Final answer:
Economists worry about the devaluation of the renminbi and its impact on the Asian financial crisis, as it could exacerbate the crisis by causing other Asian currencies to decline. An appreciation could either improve or aggravate the crisis depending on its effect on trade competitiveness.
Step-by-step explanation:
Some economists worry about the devaluation of the renminbi (RMB), China's currency, and its potential impact on Asian financial stability. If the renminbi were to devalue, it could exacerbate the Asian financial crisis by causing a decline in other Asian currencies, potentially leading to banking system collapse and recessions in those countries. Conversely, if the renminbi were to appreciate, it could improve the crisis by making other Asian economies more competitive in comparison. However, the appreciation of the renminbi could also lead to a reduction in China's export competitiveness, possibly aggravating the crisis if China plays a significant role in regional economic stability.
Given the scenarios, option B is the most likely concern among economists. A devaluation of the renminbi, or any major currency, can have significant implications for international trade and financial stability. The increased supply and decreased demand for a currency due to expected depreciation can lead to its devaluation, impacting exchange rates and potentially contributing to the problems that plagued the Asian financial system during its crisis.