Refer to the Diagram Below

question 18

Multiple Choice

Refer to the diagram below.The initial demand for and supply of pesos are shown by D₁ and S₁.Suppose Canada reduces its imports of Mexican goods, shifting its demand for pesos from D₁ and D₂.If Canada was operating under a system of exchange controls that maintains the exchange rate at E, the Canadian government would:

• A)find that, at the controlled exchange rate, pesos would be in surplus.
• B)be faced with deteriorating terms of trade.
• C)be faced with the problem of rationing BG pesos to Canadian importers who want BF pesos.
• D)be faced with the problem of rationing BF pesos to Canadian importers who want BG pesos.

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Definitions:

Gamete

A mature haploid male or female germ cell which is able to unite with another of the opposite sex in sexual reproduction to form a zygote.

Spermatogenesis

The process by which male spermatozoa are produced, involving meiosis and subsequent maturation.

Oogenesis

Production of eggs in females by the process of meiosis and maturation.

Sister Chromatids

Identical copies of a chromosome, connected by a centromere, created during DNA replication and present in a cell before it divides.