-Refer to the Graph Above to Answer This Question

question 21

Multiple Choice

-Refer to the graph above to answer this question.If the American dollar was fixed at a value of OB Canadian dollars and the demand was to drop from D1 to D2,then which of the following would be true?

• A)There would be a balance of payments surplus with Canada of HJ.
• B)There would be a balance of payments surplus with Canada of FG.
• C)The exchange rate would fall from OB to OA.
• D)There would be a balance of payments deficit with Canada of FG.
• E)The Canadian dollar would depreciate until the demand and supply of the American dollar was again equal.

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Definitions:

Population

The total number of people living in a particular area, country, or the world, or a specific group of individuals within a larger community.

Randomly

Without a specific pattern, purpose, or objective; happening by chance.

Without Bias

an approach or stance that is impartial, fair, and not influenced by personal or societal prejudices.

Open Questions

Open Questions are designed to encourage a full, meaningful answer beyond a simple yes or no, often facilitating deeper discussion or understanding.