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Explanation:
China contributed to global disinflationary pressures through declining export prices and weaker domestic demand. This had a deflationary influence on global prices, helping lower import price increases worldwide, thus reinforcing disinflation trends in major economies.
Choice A is incorrect. Reserve sales primarily affect currency valuation rather than export pricing.
Choice B is incorrect. Higher export prices would exert inflation, not reduce it globally.
Choice D is incorrect. Increased domestic consumption would typically raise global pricing pressure.
Things to Remember
Q.6365 China's economic conditions have had a discernible impact on the global disinflationary trend over the past year. What role did China play in influencing global disinflation?
A
By selling large foreign reserves to stabilize local currency.
B
By allowing sharp price increases in exports to offset trade deficits.
C
By contributing to deflationary pressures through declining export prices and weaker domestic demand.
D
By increasing domestic consumption, leading to higher import prices globally.
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