Refer to the Above Diagram Where D and S Are

question 49

Multiple Choice

Refer to the above diagram where D and S are Canada's demand for and supply of Swiss francs.At the equilibrium exchange rate, E, Canada's balance of payments is in equilibrium.Given a change in demand from D to D' Canada could maintain the dollar price of francs by:

• A)shifting the S curve to the right through the use of domestic expansionary policies.
• B)instituting exchange controls to ration Ed francs to Canadian importers who want Ec francs.
• C)using international monetary reserves to cover the Ec shortage of francs.
• D)using international monetary reserves to cover the cd shortage of francs.

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Definitions:

UCS

An abbreviation for Unconditioned Stimulus, a stimulus that naturally and automatically triggers a response without prior conditioning.

Instinctive Behaviour

Inborn, automatic responses to specific stimuli that are not learned but rather naturally occur in all members of a species.

Conditioning

The process of learning associations between environmental stimuli and behavioral responses, often distinguished as classical or operant conditioning.

Cognitive Components

The aspects of thinking and understanding, including perception, memory, judgment, and reasoning.