Refer to the Figure Below to Answer the Following Questions

question 68

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 D2.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.

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