Assume the Chinese monetary authorities are committed to maintaining the exchange rate of China’s currency, the Yuan, against the US$ between ${P_1}$ and ${P_2}$ on the diagram.
What might they do if supply changed from ${S_1}$ to ${S_2}$?

introduce controls on Chinese investment overseas
2 )
lower interest rates
3 )
remove tariffs on imports from USA
4 )
sell Yuan on the foreign exchange markets
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