Refer to the Figure Below to Answer the Following Questions

question 97

Multiple Choice

Refer to the figure below to answer the following questions.

Figure 25.3.1
-In Figure 25.3.1,suppose the demand for dollars permanently decreases to D?.To maintain the target,the Bank of Canada

• A)buys dollars.
• B)sells dollars.
• C)must decrease the nation's net exports.
• D)cannot permanently maintain the exchange rate target of 90 U.S.cents per Canadian dollar.
• E)none of the above.

---

Definitions:

Inverse Supply

The inverse supply curve represents the relationship between the price of a good and the quantity supplied, plotted with price on the vertical axis and quantity on the horizontal.

Inverse Demand Function

A mathematical function that expresses the price of a good as a function of the quantity demanded.

Inverse Supply

A concept that illustrates how the quantity of goods supplied by producers decreases as the price decreases, typically represented by an upward sloping curve in economics.

Tax

A compulsory financial charge or other levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures.