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FIGURE 34-5 -Refer to Figure 34-5.Suppose Canada Has a System of Fixed

Question 153

Multiple Choice

FIGURE 34-5
-Refer to Figure 34-5.Suppose Canada has a system of fixed exchange rates.A decrease in the world's demand for Canadian exports will shift

A) the supply curve for foreign exchange from S₀ to S₁and aggregate demand curve from AD₀ to AD₁.
B) the supply curve for foreign exchange from S₀ to S₁ and the aggregate demand curve from AD₀ to AD₂.
C) the supply curve for foreign exchange from S₁ to S₀ and the aggregate demand curve from AD₂ to AD₁.
D) only the aggregate demand curve,to AD₁.
E) only the aggregate demand curve,to AD₂.