Exhibit 18.1 -Refer to Exhibit 18.1. a Shift of the Demand Curve

Exhibit 18.1

-Refer to Exhibit 18.1. A shift of the demand curve from D' to D will _____

A) decrease the exchange rate from E' to E.
B) increase the exchange rate from E to E'.
C) cause the foreign currency to appreciate.
D) cause the domestic currency to depreciate.
E) cause the supply curve to shift.