Suppose That the American Economy Goes into a Severe Recession

Suppose that the American economy goes into a severe recession.Under a flexible exchange rate system,what can we expect?

A) That the demand for the Canadian dollar would increase,leading to an appreciation of the Canadian dollar.
B) That the demand for the Canadian dollar would decrease,leading to a depreciation of the Canadian dollar.
C) That the supply of the Canadian dollar would increase,leading to an appreciation of the Canadian dollar.
D) That the supply of the Canadian dollar would decrease,leading to a depreciation of the Canadian dollar.
E) That the supply of the Canadian dollar would increase,leading to a depreciation of the Canadian dollar.