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Consider the Market in Which Canadian Dollars Are Exchanged for Chinese

Question 72

Multiple Choice

Consider the market in which Canadian dollars are exchanged for Chinese yuan (the Chinese currency) .An increase in Chinese demand for Canadian resources would


A) shift the supply-of-yuan curve to the right and lead to an appreciation of the Canadian dollar.
B) shift the supply-of-yuan curve to the left and lead to an appreciation of the Canadian dollar.
C) shift the demand-for-yuan curve to the right and lead to a depreciation of the Canadian dollar.
D) shift the demand-for-yuan curve to the left and lead to an appreciation of the Canadian dollar.
E) have no effect on the foreign-exchange market.

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