Figure 30-4 -Refer to Figure 30-4. the Equilibrium Exchange Rate Is at Exchange

Figure 30-4

-Refer to Figure 30-4. The equilibrium exchange rate is at A,$1.25/euro.Suppose the European Central Bank pegs its currency at $1.00/euro.At the pegged exchange rate,

A) there is a shortage of euro equal to 500 million.
B) there is a surplus of euro equal to 300 million.
C) there is a shortage of euro equal to 200 million.
D) there is a surplus of euro equal to 700 million.