Answer:
Revaluation; 6.25%
Explanation:
Given that,
Change in the exchange rate of china and United states
= 6.40 Yuan/$ to 6.00 Yuan/$
Total change = 6.40 Yuan/$ - 6.00 Yuan/$
= 0.40 Yuan/$
This means that the value of Chinese yuan is appreciated against the dollar because now a Chinese person have to pay less for any product imported from the united states.
Percentage appreciation in Yuan:
= (Total change ÷ Initial value) × 100
= (0.40 ÷ 6.40) × 100
= 0.0625 × 100
= 6.25%
