Suppose that china is pegging its exchange rate to the us


Suppose that China is pegging its exchange rate to the US dollar. What are the actions required on the part of the Chinese central bank in response to (a) a decrease in income in the US, (b) a decrease in income in China, and (c) contractionary (tight) monetary policy by the US Federal Reserve?

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Macroeconomics: Suppose that china is pegging its exchange rate to the us
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