An interesting report from thee BBC on the efect of the rising Yuan
http://news.bbc.co.uk/1/hi/business/7499267.stm
a) Why will an appreciating yuan reduce exports?
b) What will be the effect on imports?
c) What will the effect be on aggregate demand?
d) Using an AD/AS diagram, explain the likely effect on the Chinese economy of this appreciation
e) Comment on why the effects might not be as you suggest
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