Exhibit 16-6 -Refer to the Graph in the Exhibit.Suppose That in Response

Exhibit 16-6

-Refer to the graph in the exhibit.Suppose that in response to the demand shift shown, Mexico's central bank takes action to protect its currency from depreciating.How difficult would it be to implement such a policy in the long run?  

A)  easy, because policymakers at the central bank can focus beyond temporary fluctuations, 
B)  easy, because over time new funds are always earned in international goods transactions 
C)  hard, because policymakers at the central bank can become confused by repeated fluctuations 
D)  hard, because policymakers at the central bank will run out of reserves of other currency with which to buy back domestic currency