China has begun to allow gradual changes in the rmbdollar, Business Economics

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China has begun to allow gradual changes in the rmbdollar

China has begun to allow gradual changes in the RMB/dollar rate since 2005. There are still observers believed the RMB is undervalued. Which of the following statement is true holding other things constant?

A. By fixing exchange rate, China has given up the monetary policy.

B. By fixing exchange rate, China has restricted capital flows.

C. By allowing exchange rate to flow, China’s net export will increase.

D. All of above.

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Business Economics: China has begun to allow gradual changes in the rmbdollar

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Business Economics: China has begun to allow gradual changes in the rmbdollar

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