Use the following to answer questions:
-(Figure: Change in Demand for Canadian Dollars)Refer to Figure: Change in the Demand for Canadian Dollars.A flow of capital from Europe to Canada would cause a movement in this foreign exchange market that is best represented by the shift from:

Question

Use the following to answer questions: 
-(Figure: Change in Demand for Canadian Dollars)Refer to Figure: Change in the Demand for Canadian Dollars.A flow of capital from Europe to Canada would cause a movement in this foreign exchange market that is best represented by the shift from:

Quizplus · Accepted Answer

A flow of capital from Europe to Canada would increase the demand for Canadian dollars, thus shifting the demand curve to the right from D₁ to D₂.

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