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Refer to the Diagram Below

question 86

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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: Refer to the diagram below. The initial demand for and supply of pesos are shown by D<sub>1</sub> and S<sub>1</sub>. Suppose Canada reduces its imports of Mexican goods, shifting its demand for pesos from D<sub>1</sub> and D<sub>2</sub>. 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:

Political Skill

An interpersonal style that manifests itself in being socially astute and engaging in behaviors that lead to feelings of confidence, trust, and sincerity.

Social Awareness

The ability to understand and respond to the feelings, needs, and concerns of others, including recognizing social cues and appropriately adapting behavior.

Empowerment

The process of giving individuals or groups more control, authority, and responsibility regarding their own lives or work.

Delegation

The assignment of formal authority and responsibility for accomplishing a specific task to another person.

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