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Figure 1510 Alt Text for Figure 15

question 139

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Figure 15.10 Figure 15.10   Alt text for Figure 15.10: In figure 15.10, a graph illustrates the quantity of yuan traded against the exchange rate. Long description for Figure 15.10: The x-axis is labelled, quantity of yuan traded in millions per day.The y-axis is labelled, exchange rate, Canadian dollar against the yuan.Supply curve S, is a straight line which slopes up from the bottom left corner to the top right corner.Demand curve D, is a straight line which slopes down from the top left corner to the bottom right corner.The curves intersect at point A, (600, 0.13) .Point A, and unmarked points (800, 0.11) , (500, $0.14) , (700, $0.14) , and (400, 0.11) are all connected to their corresponding values on the x and y-axes with dotted lines. -Refer to Figure 15.10.Suppose the Chinese government decides to abandon pegging the yuan to the Canadian dollar at a rate that overvalues the yuan.Using the figure above, the equilibrium exchange rate would be ________, and Chinese exports to Canada would ________ in price. A) $0.11/yuan; decrease B) $0.14/yuan; increase C) $0.13/yuan; increase D) $0.13/yuan; decrease E) 600 million yuan; increase Alt text for Figure 15.10: In figure 15.10, a graph illustrates the quantity of yuan traded against the exchange rate.
Long description for Figure 15.10: The x-axis is labelled, quantity of yuan traded in millions per day.The y-axis is labelled, exchange rate, Canadian dollar against the yuan.Supply curve S, is a straight line which slopes up from the bottom left corner to the top right corner.Demand curve D, is a straight line which slopes down from the top left corner to the bottom right corner.The curves intersect at point A, (600, 0.13) .Point A, and unmarked points (800, 0.11) , (500, $0.14) , (700, $0.14) , and (400, 0.11) are all connected to their corresponding values on the x and y-axes with dotted lines.
-Refer to Figure 15.10.Suppose the Chinese government decides to abandon pegging the yuan to the Canadian dollar at a rate that overvalues the yuan.Using the figure above, the equilibrium exchange rate would be ________, and Chinese exports to Canada would ________ in price.

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