Economics (AS & A Level) · Oct / Nov 2022 · Paper 11 · Question 20

Assume the Chinese monetary authorities are committed to maintaining the exchange rate of China's currency, the Yuan, against the US$ between P1 and P2 on the diagram. What might they do if supply changed from S1 to S2?

1. Aintroduce controls on Chinese investment overseas
2. Blower interest rates
3. Cremove tariffs on imports from USA
4. Dsell Yuan on the foreign exchange markets

As printed in the paper