Asked by Valen Montoya on Sep 24, 2024
Verified
If the Chinese Yuan devalues against the US dollar,then
A) Both the US importers and Chinese importers would benefit
B) The US importers would benefit while the Chinese importers would be hurt
C) The US importers would be hurt while the Chinese importers would benefit
D) Both the US importers and Chinese importers would be hurt
Chinese Yuan
The recognized monetary unit of the People's Republic of China, utilized within mainland China but excluded from its special administrative regions such as Hong Kong.
Devalues
Reduces the worth or monetary value of an item or currency.
US Importers
Businesses or individuals in the United States that buy goods from foreign countries for resale or use in the US.
- Perceive the effect of currency devaluation on the monetary outlay of consumers and suppliers, and its influence on the cost of exporting and importing goods.
Verified Answer
GM
Garrett McMillanabout 17 hours ago
Final Answer :
B
Explanation :
If the Chinese Yuan devalues against the US dollar, it means the US dollar has become relatively stronger, making imported goods from China cheaper for US importers. On the other hand, Chinese importers will have to pay more in Yuan to buy the same amount of US goods, which means they will be hurt. Therefore, the US importers would benefit while the Chinese importers would be hurt.
Learning Objectives
- Perceive the effect of currency devaluation on the monetary outlay of consumers and suppliers, and its influence on the cost of exporting and importing goods.
Related questions
Currency Devaluation ______Export Producers Because_______ ...
Currency Devaluations Hurt ...
If the Chinese Yuan Devalues Against the US Dollar,then ...
A Weaker Peso,relative to the US Dollar,causes the Demand for ...
Currency Devaluations Hurt Consumers Because They Make Imports ________ Expensive ...