Figure 156 Alt Text for Figure 15

Figure 15.6 Alt text for Figure 15.6: In figure 15.6, a graph illustrates the quantity of euros traded against the exchange rate.
Long description for Figure 15.6: The x-axis is labelled, quantity of euros traded per day.The y-axis is labelled, exchange rate, Canadian dollar against the euro, with values 1.00 and 1.05 dollars marked.A straight line supply curve, S slopes up from the bottom left corner to the top right corner.2 parallel straight line demand curves, D1 and D2 slope down form the top left corner to the bottom right corner.Curve D2 is plotted to the left of curve D1.The change from curve D1 to curve D2 is indicated by a left pointing arrow.Curve S intersects curve D1 at point A, with a y-axis value of 1.05.Curve S intersects curve D2 at point B, with a y-axis value of 1.00.Points A and B are connected to their corresponding x and y-axis values with dotted lines.The difference between the y-axis values is indicated with a down pointing arrow.
-Refer to Figure 15.6.Which of the following would cause the change depicted in the figure above?

A) European productivity rises relative to Canadian productivity.
B) Canadians decrease their preferences for goods produced in the EU relative to Canadian goods.
C) The European Union increases its quotas on German wristwatches.
D) The price level of goods produced in the EU increases relative to the price level of goods produced in Canada.
E) An increase in European interest rates relative to Canadian interest rates.