Refer to Figure 19-5. The Chinese government pegs the yuan to the dollar, at one of the specified exchange rates on the graph, such that it undervalues its currency. Using the figure above, this would generate
A) a surplus of yuan equal to 400 million.
B) a surplus of yuan equal to 300 million.
C) a surplus of yuan equal to 200 million.
D) a shortage of yuan equal to 200 million.
E) a shortage of yuan equal to 400 million.
E
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