Figure 13-2 -Refer to Figure 13-2. Suppose That These Diagrams Refer to Diagrams

Multiple Choice

Figure 13-2
-Refer to Figure 13-2. Suppose that these diagrams refer to Canada. If the interest rate was initially at r0 and Japan voluntarily restricted its exports to Canada, what would happen to the interest rate?

A) It would stay at r0.
B) It would decrease because supply would shift right.
C) It would increase because supply would shift left.
D) It would decrease because demand would shift left.