Refer to the Graph

Multiple Choice

Refer to the graph. Higher inflation in the United States relative to that in Canada, ceteris paribus, will cause a(n)

A) decrease in the supply of U.S. dollars.
B) increase in the demand for U.S. dollars.
C) decrease in the value of the U.S. dollar in terms of the Canadian dollar.
D) increase in the value of the U.S. dollar in terms of the Canadian dollar.