-Refer to the Above Diagram Where D and S Are

question 99

Multiple Choice

-Refer to the above diagram where D and S are Canada's demand for and supply of Swiss francs.At the equilibrium exchange rate,E,Canada's balance of payments is in equilibrium.Given a change in demand from D to D' Canada could maintain the dollar price of francs by:

• A) shifting the S curve to the right through the use of domestic expansionary policies.
• B) instituting exchange controls to ration Ed francs to Canadian importers who want Ec francs.
• C) using international monetary reserves to cover the Ec shortage of francs.
• D) using international monetary reserves to cover the cd shortage of francs.

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The ability of a society to maintain existence, adapt, and continue to function over time.

Talcott Parsons

An American sociologist known for his development of social action theory and for his role in the establishment of the structural-functional approach in sociology.

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