Refer to the Diagram Below Where D and S Are

question 86

Multiple Choice

Refer to the diagram below 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.A shift of the demand curve to D' might be the result of:

• A)a relative decline in interest rates in Switzerland.
• B)a reduction in Canada's relative price level.
• C)a recession in Canada, which slows its rate of growth.
• D)a relative decline in interest rates in Canada.

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