Refer to the Below Graph,which Shows a Change in the Demand

Refer to the below graph,which shows a change in the demand for dollars from D to D₁.Under a system of flexible exchange rates,the

A) exchange rate will increase to ≤0.70 per dollar.
B) exchange rate will increase to $0.70 per pound.
C) shortage equal to ab would be met using international monetary reserves.
D) payment deficit will cause changes in domestic price and income levels,shifting demand to the left,supply to the right,and re-establishing the original exchange rate.
E) price of a dollar will fall to ≤0.50.