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-Refer to the Above Diagram Where D and S Are

question 112

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  -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.Under a system of fixed exchange rates,the shift in demand from D to D' will cause: A)  Canada to increase its stocks of international monetary reserves. B)  a Swiss balance of payments deficit. C)  a Canadian balance of payments deficit. D)  a Canadian balance of payments surplus.
-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.Under a system of fixed exchange rates,the shift in demand from D to D' will cause:


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