In order to level the playing field in trade between the U.S.and China,U.S.policymakers have called upon China's government to allow the Yuan China's currency)to float freely,as other world currencies.Through government regulation,China maintains an undervalued currency,which results in:
A)More buying power for Chinese consumers who want to purchase U.S.goods and goods from other countries.
B)Maintaining robust Chinese exports and a favorable balance of trade for China.
C)Developing better relations with industrialized countries who want to increase the value of their exports.
D)Stability and strength of the Chinese Yuan against the U.S.dollar and the euro.

Question

Quizplus · Accepted Answer

China's undervalued currency allows their exports to be cheaper and more competitive in foreign markets, leading to a favorable balance of trade. Allowing the Yuan to float freely would likely result in an appreciation of the currency, making Chinese exports more expensive and potentially hurting their economy.

In Order to Level the Playing Field in Trade Between