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Refer to the Figure Below to Answer the Following Questions

question 18

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Refer to the figure below to answer the following questions.
Refer to the figure below to answer the following questions.     Figure 25.3.1 -In Figure 25.3.1,suppose the demand for dollars temporarily increases so that the demand curve shifts to D1.To maintain the target exchange rate,the Bank of Canada A) sells dollars. B) buys dollars. C) must violate interest rate parity but not purchasing power parity. D) must raise the target exchange rate. E) must lower the target exchange rate.
Figure 25.3.1
-In Figure 25.3.1,suppose the demand for dollars temporarily increases so that the demand curve shifts to D1.To maintain the target exchange rate,the Bank of Canada


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