All else constant, a decrease in the level of economic activity in foreign countries could be expected to have an adverse effect on the domestic economy

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 undervalues its currency. Using the figure above, this would generate

A) a surplus of yuan equal to 400 million. B) a surplus of yuan equal to 300 million. C) a surplus of yuan equal to 200 million. D) a shortage of yuan equal to 200 million. E) a shortage of yuan equal to 400 million.

Some economists argue that free trade is beneficial regardless of the actions of a country's trading partners, including trading partners that heavily protect their home markets

Indicate whether the statement is true or false