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FIGURE 34-5 Refer to Figure 34-5

Question 152

Multiple Choice

  FIGURE 34-5 Refer to Figure 34-5.Suppose Canada has a system of fixed exchange rates.A decrease in the world's demand for Canadian exports will shift A) the supply curve for foreign exchange from S<sub>0</sub> to S<sub>1</sub><sub> </sub>and aggregate demand curve from AD<sub>0</sub> to AD<sub>1</sub>. B) the supply curve for foreign exchange from S<sub>0</sub> to S<sub>1</sub> and the aggregate demand curve from AD<sub>0</sub> to AD<sub>2</sub>. C) the supply curve for foreign exchange from S<sub>1</sub> to S<sub>0</sub> and the aggregate demand curve from AD<sub>2</sub> to AD<sub>1</sub>. D) only the aggregate demand curve,to AD<sub>1</sub>. E) only the aggregate demand curve,to AD<sub>2</sub>. FIGURE 34-5 Refer to Figure 34-5.Suppose Canada has a system of fixed exchange rates.A decrease in the world's demand for Canadian exports will shift


A) the supply curve for foreign exchange from S0 to S1 and aggregate demand curve from AD0 to AD1.
B) the supply curve for foreign exchange from S0 to S1 and the aggregate demand curve from AD0 to AD2.
C) the supply curve for foreign exchange from S1 to S0 and the aggregate demand curve from AD2 to AD1.
D) only the aggregate demand curve,to AD1.
E) only the aggregate demand curve,to AD2.

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