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Use the Figure Below to Answer the Following Questions

Question 157

Multiple Choice

Use the figure below to answer the following questions.
Figure 32-2 Use the figure below to answer the following questions. Figure 32-2 -Refer to Figure 32-2. Suppose that these diagrams refer to Canada. If the interest rate were initially at r<sub>0</sub> and China voluntarily restricted its exports to Canada, what would happen to the interest rate? A) It would stay at r<sub>0</sub>. B) It would decrease because supply would shift right. C) It would increase because supply would shift left. D) It would decrease because demand would shift left.
-Refer to Figure 32-2. Suppose that these diagrams refer to Canada. If the interest rate were initially at r0 and China voluntarily restricted its exports to Canada, what would happen to the interest rate?


A) It would stay at r0.
B) It would decrease because supply would shift right.
C) It would increase because supply would shift left.
D) It would decrease because demand would shift left.

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