Problem
Suppose that the following two events take place in the market for China's currency, the yuan: U.S. parents are more willing than before to buy action figures and other Chinese toy exports, and China's government tightens restrictions on the amount of U.S. dollar-denominated financial assets that Chinese residents may legally purchase. What happens to the dollar price of the yuan? Does the yuan appreciate or depreciate relative to the dollar?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.