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FIGURE 34-2 Refer to Figure 34-2

Question 123

Multiple Choice

FIGURE 34-2 Refer to Figure 34-2.If the exchange rate is e<sub>2</sub>,there is A) an excess demand for Canadian dollars. B) pressure for the Canadian dollar to appreciate. C) pressure for the exchange rate to fall. D) pressure for the Canadian dollar to depreciate. E) a surplus of foreign exchange. FIGURE 34-2 Refer to Figure 34-2.If the exchange rate is e2,there is


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

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