The following figure depicts the demand for Chinese yuan in the foreign currency exchange market. Use this figure to answer the next questions: 
-If the interest rates in China fall relative to interest rates in the United States and, at the same time, U.S. consumer demand for Chinese goods decreases, the demand curve in the figure above:
A) will not shift because interests rates are not related to exchange rates.
B) will not shift because interests rates only affect the supply curve.
C) can either increase from D1 to D2 or decrease from D1 to D3.
D) will increase from D1 to D2.
E) will decrease from D1 to D3.
Correct Answer:
Verified
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