
-Refer to the graph above to answer this question.Suppose that the demand for the American dollar shifts from D1 to D2.What might be the reason for this shift?
A) The Canadian dollar has depreciated.
B) The prices of Canadian goods and services have increased relative to American prices.
C) The prices of American goods and services have increased relative to Canadian prices.
D) The Canadian economy has entered a boom period.
E) Interest rates in the USA have decreased relative to Canadian rates.
Correct Answer:
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Q14: Q15: If a French importer can buy 8 Q16: If the exchange rate changes so that Q17: If the Canadian dollar appreciates which of Q18: If the Canadian dollar appreciates relative to Q20: Advocates of flexible exchange rates argue all Q21: Assume that France and Britain have flexible Q22: What does the quantity supplied of Canadian![]()
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