1. Read the case study of China Pegs the Yuan, and answer the questions below: 1) Suppose that yuan was initially xed at $0.12 USD per yuan, describe how \"success as an exporter" and "non-Chinese private investors' eager to shift funds into China" has led yuan undervalued, illustrate in a demand and supply diagram. 2) Use a demand and supply diagram to show how China's foreign exchange market intervention has managed to keep yuan at a xed exchange rate with the USD. 3) Use demand supply diagrams to show how each of the following policy changes might eliminate the disequilibrium in the foreign exchange market for yuan. i. An appreciation of the yuan. ii. Placing restrictions on foreigners who want to invest in China. iii. Removing restrictions on Chinese who want to invest abroad. iv. Imposing taxes in Chinese exports. 4) \"China's trading partners feel that China is, in effect, subsidizing Chinese exports". Explain how su bsiding happened