-Under a System of Flexible Exchange Rates,the Shift in Demand

Multiple Choice

-Under a system of flexible exchange rates,the shift in demand from D₀ to D₁ and in supply from S₀ to S₁:

A) will ultimately cause Canada's exports to decline and its imports to rise
B) causes the dollar to appreciate
C) causes the pound to depreciate
D) causes the dollar to depreciate
E) has no effect on the values of the two currencies