-Refer to the Graph Above to Answer This Question

Multiple Choice

-Refer to the graph above to answer this question.Assume that the demand for the U.S.dollar was to shift from D1 to D2 and that exchange rates were flexible.What would result?

A) The value of the U.S.dollar in Canadian terms would increase to OC.
B) A problem of rationing a shortage of U.S.dollars would arise in Canada.
C) The value of the Canadian dollar in U.S.terms would rise from 1/OB U.S.dollars equals Can $1,to 1/OA U.S.dollars equals Can $1.
D) The demand for the Canadian dollar would fall by a similar amount.