-A shift of the demand curve from D₀ to D₁ and the supply curve from S₀ to S₁ might be the result of a(n): A)relative decline of interest rates in Britain B)lower inflation rate in Canada than in Britain C)improvement in the quality of Canadian products D)relative decline in interest rates in Canada E)belief by speculators that the value of the Canadian dollar will soon rise

Question

Quizplus · Accepted Answer

A relative decline in interest rates in Canada would make Canadian products more attractive to British consumers, leading to an increase in demand for Canadian products. This would shift the demand curve to the right. Additionally, a relative decline in interest rates in Canada would make it more attractive for Canadian producers to borrow money to invest in production, leading to an increase in supply. This would shift the supply curve to the right.

-A Shift of the Demand Curve from D0 to D1

-A Shift of the Demand Curve from D₀ to D₁