Freely Floating Exchange & Managed Floating Exchange Rate
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Describe the difference between the U.S. Freely Floating Exchange Rate and China's Managed Floating Exchange Rate.
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This solution describes the difference between the U.S. freely floating exchange rate and China's managed floating exchange rate.
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Basically, in the U.S. we have a freely floating exchange rate, which means that our exchange rate is set by two primary factors - supply and demand in the foreign exchange market. The U.S. government does not interfere in this process and does not attempt to influence the exchange rates in ...
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