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Question 23

Multiple Choice

  -Refer to the graph above to answer this question.Under a system of flexible exchange rates,what will the shift in demand from D1 to D2 do? A) Cause Canadian exports to decline and its imports to rise. B) Cause the Canadian dollar to depreciate. C) Cause the franc to depreciate. D) Cause the Canadian dollar to appreciate. E) Cause a balance of payments deficit in Switzerland.
-Refer to the graph above to answer this question.Under a system of flexible exchange rates,what will the shift in demand from D1 to D2 do?


A) Cause Canadian exports to decline and its imports to rise.
B) Cause the Canadian dollar to depreciate.
C) Cause the franc to depreciate.
D) Cause the Canadian dollar to appreciate.
E) Cause a balance of payments deficit in Switzerland.

Correct Answer:

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