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Explain how a change in exchange rate

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Reference no: EM132130119

Now 5yuan = 0.75 USD, before: 1USD = 5 yuan

  1. Which currency has appreciated? why? and Identify two economic factors that can explain your answer to the above question ( what is economic factor? I know that USD is appriciated and why, since with same amount of yuan, less USD is possible to be bought)
  2. Explain how a change in exchange rate of the U.S can affect the balance of trade of U.S

Reference no: EM132130119

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