The Following Figure Depicts the Demand for U

The following figure depicts the demand for U.S. dollars in the foreign currency exchange market. Use this figure to answer the following questions.
-If interest rates in Mexico rise relative to interest rates in the United States,the demand curve in the figure above

A) will not shift because interest rates are not related to exchange rates.
B) will not shift because interest rates only affect the supply curve.
C) can either increase from D₁ to D₂ or decrease from D₁ to D₃,depending on the relative magnitude of the two effects.
D) will increase from D₁ to D_2.
E) will decrease from D₁ to D_3.