Question: International Macro & Policy Problem Set 5 Please upload a single PDF file of your problem set onto Canvas. Please don't send your problem set

International Macro & Policy Problem Set 5 Please upload a single PDF file of your problem set onto Canvas. Please don't send your problem set by email, don't upload formats that are not PDF, and don't upload multiple files. You will lose half of your grade if you don't follow these instructions. Thank you. China maintains a fixed exchange rate of the yuan (RMB) relative to the US dollar (USD). Until recently this fixed exchange rate was credible (Efg,), 5 JUSD = EryvBusp) but now agents expect the yuan to be revalued in the future (Ey,, 5 /usp

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