Refer to the Above Diagram Where D and S Are

Multiple Choice

Refer to the above diagram where D and S are Canada's demand for and supply of Swiss francs.At the equilibrium exchange rate, E, Canada's balance of payments is in equilibrium.Under a system of fixed exchange rates, the shift in demand from D to D' will cause:

A) Canada to increase its stocks of international monetary reserves.
B) a Swiss balance of payments deficit.
C) a Canadian balance of payments deficit.
D) a Canadian balance of payments surplus.