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Figure 19-5 -Refer to Figure 19-5.The Chinese Government Pegs the Yuan to the Yuan

Question 119

Multiple Choice

Figure 19-5 Figure 19-5 -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 overvalues its currency.Using the figure above,this would generate A) a shortage of yuan equal to 500 million. B) a shortage of yuan equal to 100 million. C) a surplus of yuan equal to 200 million. D) a surplus of yuan equal to 700 million.
-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 overvalues its currency.Using the figure above,this would generate


A) a shortage of yuan equal to 500 million.
B) a shortage of yuan equal to 100 million.
C) a surplus of yuan equal to 200 million.
D) a surplus of yuan equal to 700 million.

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