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.
Correct Answer:
Verified
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