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Exchange Rates: US$1 = 6.43 yuan in 2011 and US$1 = 6.12 yuan in 2013.
a. The data show that the dollar appreciated against the Chinese yuan. True or False?
b. The indicated change in the exchange rate will tend to (increase/decrease) US exports to China and (increase/decrease) imports from China.
c. Applying the SRAS-AD model, we’d say that the effect of this given change in the exchange rate is to make the general price level in the US (increase/decrease), while total production and employment will (increase/decrease).
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