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Refer to the Figure Below to Answer the Following Questions

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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 decreases so that the demand curve shifts to D2.To maintain the target exchange rate,the Bank of Canada A) sells dollars. B) buys dollars. C) must violate both interest rate parity and 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 decreases so that the demand curve shifts to D2.To maintain the target exchange rate,the Bank of Canada


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