-Refer to the Graph Above to Answer This Question

Multiple Choice

-Refer to the graph above to answer this question.If the American dollar was fixed at a value of OB Canadian dollars and the demand was to drop from D1 to D2,then which of the following would be true?

A) There would be a balance of payments surplus with Canada of HJ.
B) There would be a balance of payments surplus with Canada of FG.
C) The exchange rate would fall from OB to OA.
D) There would be a balance of payments deficit with Canada of FG.
E) The Canadian dollar would depreciate until the demand and supply of the American dollar was again equal.