Figure 30-8 -Refer to Figure 30-8. the Equilibrium Exchange Rate Is at Rate

Figure 30-8
-Refer to Figure 30-8. 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.