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 president of the United States decides to support the dollar by purchasing dollars with U.S.holdings of foreign currencies.

A) a.
B) b.
C) c.
D) D.When the United States buys dollars with foreign currency holdings,the demand for the dollar in the foreign exchange market leads to a rightward shift in the demand for dollars.