Which of the following would NOT be generally considered as one of the main reasons for the rapid expansion of middle class in China?A.Broad-based economic growth due to fast development in 2nd/3rd industry.B.Infrastructure development caused by rapid urbanisation.C.A steady increase in labour force participation and improvement in labour market conditions.D.People’s Bank of China, as the central bank, abandoned fixed exchange rate regimes, and adopted floating or managed exchange rate regimes.
Question
Which of the following would NOT be generally considered as one of the main reasons for the rapid expansion of middle class in China?A.Broad-based economic growth due to fast development in 2nd/3rd industry.B.Infrastructure development caused by rapid urbanisation.C.A steady increase in labour force participation and improvement in labour market conditions.D.People’s Bank of China, as the central bank, abandoned fixed exchange rate regimes, and adopted floating or managed exchange rate regimes.
Solution
The statement that would NOT be generally considered as one of the main reasons for the rapid expansion of the middle class in China is:
D. People’s Bank of China, as the central bank, abandoned fixed exchange rate regimes, and adopted floating or managed exchange rate regimes.
While changes in exchange rate regimes can have significant impacts on a country's economy, they are not typically directly linked to the expansion of the middle class. The expansion of the middle class in China has been more directly influenced by factors such as broad-based economic growth, infrastructure development due to rapid urbanisation, and improvements in labour market conditions.
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