The Balassa-Samuelson forecast applied to China during 2000-04:
A) failed to predict the slow rise in the exchange rate that actually occurred.
B) failed to predict the Chinese inflation that actually occurred.
C) failed to predict the rise in Chinese real GDP that actually occurred.
D) predicted correctly that the slow appreciation of the Chinese exchange rate would result in higher inflation of the Chinese yuan.

Question

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The Answer of The Balassa-Samuelson forecast applied to China during 2000-04:
A) failed to predict the slow rise in the exchange rate that actually occurred.
B) failed to predict the Chinese inflation that actually occurred.
C) failed to predict the rise in Chinese real GDP that actually occurred.
D) predicted correctly that the slow appreciation of the Chinese exchange rate would result in higher inflation of the Chinese yuan.

The Balassa-Samuelson Forecast Applied to China During 2000-04