-A Shift of the Demand Curve from D₀ to D₁

question 10

Multiple Choice

-A shift of the demand curve from D₀ to D₁ and the supply curve from S₀ to S₁ might be the result of a(n) :

• A)relative decline of interest rates in Britain
• B)lower inflation rate in Canada than in Britain
• C)improvement in the quality of Canadian products
• D)relative decline in interest rates in Canada
• E)belief by speculators that the value of the Canadian dollar will soon rise

---

Definitions:

Free-enterprise Economy

An economic system in which private business operates in competition and largely free of state control, with the right to buy, sell, and conduct business.