Choose the Letter of the Diagram in Figure 36

Choose the letter of the diagram in Figure 36.2 that represents the shift in the foreign exchange market for dollars given the following situation,ceteris paribus: The U.S.economy suddenly experiences a recession.

A) a.
B) b.
C) c.
D) D.A recession will cause a leftward shift in the supply of dollars since U.S.consumers,feeling the pinch of the recession,will cut back on purchases of imports,reducing the supply of dollars on the foreign exchange market.