Question: Unlike countries with currency problems, China has used a fixed exchange rate to keep the value of its currency below its market level. a. Why

Unlike countries with currency problems, China has used a fixed to keep the value of its currency below its market level.
a. Why is it easier for a country to undervalue a currency than to overvalue it?
b. Why does China’s exchange-rate policy affect its purchase of U.S. Treasury securities?
c. What is likely to happen to China’s imports, exports, and purchases of U.S. securities if the is allowed to float?

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