Figure 32-5 Refer to This Diagram of the Open-Economy Macroeconomic Model to Model

Multiple Choice

Figure 32-5
Refer to this diagram of the open-economy macroeconomic model to answer the questions below.

-Refer to Figure 32-4.Suppose that U.S.firms desire to purchase more equipment and build more factories and stores in the U.S.The effects of this are illustrated by

A) shifting the demand curve in panel a to the right and the demand curve in panel c to the left.
B) shifting the demand curve in panel a to the right and the supply curve in panel c to the left.
C) shifting the supply curve in panel a to the right and the demand curve in panel c to the left.
D) shifting the supply curve in panel a to the right and the supply curve in panel c to the right.