Question: a. Do you think the yuanU.S. dollar exchange rate is a problem for Americans or the source of the U.S. current account deficit? b. Do

a. Do you think the yuan—U.S. dollar exchange rate is a problem for Americans or the source of the U.S. current account deficit?
b. Do you think that appreciation of the yuan against the U.S. dollar can help the United States to eliminate its current account deficit?
c. What do you predict would be the main effects of an increase in the yuan—U.S. dollar exchange rate?
d. What, if anything, could U.S. policy do to reduce the U.S. current account deficit?
e. Why do you think China was reluctant to see the yuan appreciate before 2005 but now is increasingly wanting it to appreciate?
f. Why do you think China was intervening to make the yuan appreciate during 2011?

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