In the Situation in Question #13 Above, During Exchange-Rate Adjustment

Multiple Choice

In the situation in Question #13 above, during exchange-rate adjustment process that takes place due to the incipient imbalance in the external sector,

A) the BP curve will shift to the left (or vertically upward) .
B) the IS curve will shift to the right (or vertically upward) .
C) the LM curve will shift to the right (or vertically downward) .
D) the LM curve will shift to the left (or vertically upward) .