-Under a System of Flexible Exchange Rates,the Shift in Demand

question 34

Multiple Choice

-Under a system of flexible exchange rates,the shift in demand from D₀ to D₁ and in supply from S₀ to S₁:

• A)will ultimately cause Canada's exports to decline and its imports to rise
• B)causes the dollar to appreciate
• C)causes the pound to depreciate
• D)causes the dollar to depreciate
• E)has no effect on the values of the two currencies

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Definitions:

Observable

Capable of being seen or noticed, often used to describe phenomena that can be perceived directly or recorded.

Somatic Cells

All the cells in the body except for the germ cells (the ova and sperm).

Genes

The basic physical and functional units of heredity made up of DNA.

Zygotes

The initial cell formed when a new organism is produced by means of sexual reproduction, resulting from the union of an ovum and a sperm cell.