Suppose that China allows its currency to float and its exports to the United States fall significantly.

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Suppose that China allows its currency to float and its exports to the United States fall significantly. How would this impact Chinese output level and its current account balance? Identify an alternative policy that it might pursue to get output back to its initial level. What impact would this policy have on its current account balance?

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International Economics

ISBN: 9780321783868

9th Edition

Authors: Steven Husted , Michael Melvin

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