Figure 157 Alt Text for Figure 15

Figure 15.7 Alt text for Figure 15.7: In figure 15.7, a graph illustrates the quantity of dollars traded against the exchange rate.
Long description for Figure 15.7: The x-axis is labelled, quantity of dollars traded per day.The y-axis is labelled, exchange rate, peso to Canadian dollar, with values 1.00 and 1.05 dollars marked.A straight line supply curve 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 a point with a y-axis value of 13.5.Curve S intersects curve D2 at a point with a y-axis value of 13.00.Both points of intersections are connected to their corresponding y-axis values with dotted lines.The difference between the y-axis values is indicated with a down pointing arrow.
-Refer to Figure 15.7.Which of the following would cause the change depicted in the figure above?

A) An increase in investment in infrastructure causes Canadian productivity to rise relative to Mexican productivity.
B) A growing preference for Margaritas causes Canadian consumers to increase their preferences for Mexican tequila relative to Canadian-produced alcohol.
C) Dumping accusations result in Canada placing tariffs on produce imported from Mexico.
D) A contractionary monetary policy causes a decrease in the price level of Canadian goods relative to Mexican goods.
E) The Canadian federal government runs a large budget surplus increasing national savings.