Refer to the Above Diagram

question 47

Multiple Choice

Refer to the above diagram.Assume the initial demand for,and supply of,dollars is shown by D₁ and S₁.Now suppose that the United Kingdom increases its imports of Canadian goods,shifting the demand for dollars curve from D₁ to D₂.Assuming a freely floating exchange rate,

• A) the exchange rate will appreciate to ≤0.50 per dollar.
• B) the exchange rate will appreciate to ≤0.40 per dollar.
• C) the exchange rate will not change.
• D) a dollar shortage of MN will result in the UK.
• E) the exchange rate will appreciate to ≤0.60 per dollar.

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Definitions:

Absent From Work

Not present at one's place of employment during scheduled working hours, for reasons such as illness, personal matters, or vacation.

Aerobic Exercise

Physical activity that improves the efficiency of the cardiovascular system in absorbing and transporting oxygen, typically performed at moderate intensity over extended periods.

Diet

The combination of foods and beverages consumed by an individual or group, often considered in the context of nutrition and health.

Weight Loss

The reduction in total body mass, due to a mean loss of fluid, body fat, or lean mass.