Figure 30-5 -Refer to Figure 30-5. the Chinese Government Pegs the Yuan

Figure 30-5

-Refer to Figure 30-5. 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) 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.