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FIGURE 34-2 Refer to Figure 34-2

Question 5

Multiple Choice

FIGURE 34-2 Refer to Figure 34-2.If the exchange rate is e<sub>1</sub>,there is A) an excess demand for foreign exchange. B) pressure for the Canadian dollar to depreciate. C) pressure for the exchange rate to rise. D) an excess supply of foreign exchange. E) a surplus of Canadian dollars. FIGURE 34-2 Refer to Figure 34-2.If the exchange rate is e1,there is


A) an excess demand for foreign exchange.
B) pressure for the Canadian dollar to depreciate.
C) pressure for the exchange rate to rise.
D) an excess supply of foreign exchange.
E) a surplus of Canadian dollars.

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