Refer to the Diagram Below

question 64

Multiple Choice

Refer to the diagram below.The initial demand for and supply of pesos are shown by D₁ and S₁.Suppose Canada reduces its imports of Mexican goods,shifting its demand for pesos from D₁ and D₂.If Canada was operating under a system of exchange controls that maintains the exchange rate at E,the Canadian government would:

• A) find that,at the controlled exchange rate,pesos would be in surplus.
• B) be faced with deteriorating terms of trade.
• C) be faced with the problem of rationing BG pesos to Canadian importers who want BF pesos.
• D) be faced with the problem of rationing BF pesos to Canadian importers who want BG pesos.

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Definitions:

Fetal Period

The period in prenatal development from nine weeks after conception until birth, when the brain continues developing, bodily structures are refined, and the fetus grows in length and weight and accumulates fat in preparation for birth.

Germinal Period

The initial two weeks of prenatal development following conception, characterized by rapid cell division and attachment to the uterine wall.

Embryonic Period

The stage of prenatal development from approximately the second to the eighth week after fertilization, during which major organs and structures within the embryo begin to develop.

Lungs

The pair of respiratory organs in the chest of humans and many animals, responsible for the exchange of oxygen and carbon dioxide.