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FIGURE 34-5 Refer to Figure 34-5

question 67

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  FIGURE 34-5 Refer to Figure 34-5.Suppose Canada has a system of fixed exchange rates.A decrease in the world's demand for Canadian exports will shift A) the supply curve for foreign exchange from S<sub>0</sub> to S<sub>1</sub><sub> </sub>and aggregate demand curve from AD<sub>0</sub> to AD<sub>1</sub>. B) the supply curve for foreign exchange from S<sub>0</sub> to S<sub>1</sub> and the aggregate demand curve from AD<sub>0</sub> to AD<sub>2</sub>. C) the supply curve for foreign exchange from S<sub>1</sub> to S<sub>0</sub> and the aggregate demand curve from AD<sub>2</sub> to AD<sub>1</sub>. D) only the aggregate demand curve,to AD<sub>1</sub>. E) only the aggregate demand curve,to AD<sub>2</sub>. FIGURE 34-5 Refer to Figure 34-5.Suppose Canada has a system of fixed exchange rates.A decrease in the world's demand for Canadian exports will shift


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