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Figure 30-5 -Refer to Figure 30-5. Suppose the Pegged Exchange Rate Is

Question 116

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Figure 30-5 Figure 30-5 -Refer to Figure 30-5. Suppose the pegged exchange rate is $0.11/yuan. Because of safety concerns and numerous product recalls, U.S. consumers lower their demand for Chinese products. Using the figure above, this would A) increase the surplus of Chinese yuan. B) decrease the surplus of Chinese yuan. C) decrease the shortage of Chinese yuan. D) increase the shortage of Chinese yuan.
-Refer to Figure 30-5. Suppose the pegged exchange rate is $0.11/yuan. Because of safety concerns and numerous product recalls, U.S. consumers lower their demand for Chinese products. Using the figure above, this would


A) increase the surplus of Chinese yuan.
B) decrease the surplus of Chinese yuan.
C) decrease the shortage of Chinese yuan.
D) increase the shortage of Chinese yuan.

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