-Given a change in demand from D0 to D1 and in supply from S0 to S1,Canada could maintain the value of Canadian dollars in terms of pounds by:
A) shifting the supply curve farther to the right through the use of domestic expansionary policies
B) maintaining a balance-of-payments surplus
C) using official international reserves to cover the Canadian dollars shortage of cd
D) using official international reserves to cover the Canadian dollars surplus of cd
E) shifting the demand curve farther to the left through the use of contractionary policies
Correct Answer:
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