A change in the exchange rate, other things remaining the same, brings a
A)change in the quantity of Canadian dollars supplied with no movement along the supply curve.
B)change in the quantity of Canadian dollars supplied and a shift of the supply curve.
C)shift of the supply curve for Canadian with a movement along the demand curve.
D)change in the quantity of Canadian dollars supplied and a movement along the supply curve.
E)shift of the supply curve for Canadian dollars with no movement along the supply curve.

Question

Quizplus · Accepted Answer

A change in exchange rate would lead to a change in the quantity of Canadian dollars supplied by firms and individuals, resulting in a movement along the supply curve. However, there would be no shift of the supply curve as the determinant of supply remains unchanged.

A Change in the Exchange Rate, Other Things Remaining the Same