Figure 32-3 Refer to the Following Diagram of the Open-Economy Macroeconomic Model

Multiple Choice

Figure 32-3
Refer to the following diagram of the open-economy macroeconomic model to answer the questions that follow.
​
Graph (a)
Graph (b) Graph (c) ​
-Refer to Figure 32-3. Suppose that U.S. firms desire to purchase more equipment and build more factories and stores in the United States. The effects of this are illustrated by

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