D2 D1 Quantity of Swiss Francs Refer to the graph above to answer this question. What might cause a shift of the demand curve from D1 to D2? Select one: O A. A recession in Canada. O B. An increase in interest rates in Canada. O C. An increase in Swiss prices relative to Canadian prices. O D. An increase in interest rates in Switzerland. Swiss Francs in Canadian $
D2 D1 Quantity of Swiss Francs Refer to the graph above to answer this question. What might cause a shift of the demand curve from D1 to D2? Select one: O A. A recession in Canada. O B. An increase in interest rates in Canada. O C. An increase in Swiss prices relative to Canadian prices. O D. An increase in interest rates in Switzerland. Swiss Francs in Canadian $
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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
Transcribed Image Text:C.
D2
D1
Quantity of Swiss Francs
Refer to the graph above to answer this question. What might cause a shift of the demand
curve from D1 to D2?
Select one:
O A. A recession in Canada.
B. An increase in interest rates in Canada.
C. An increase in Swiss prices relative to Canadian prices.
D. An increase in interest rates in Switzerland.
Clear my choice
Swiss Francs in Canadian $

Transcribed Image Text:By what method may a government be able to increase the value of its country's currency?
Select one:
O A. By imposing an export tax.
O B. By buying its own currency.
O C. By decreasing its rate of interest.
O D. By buying foreign currencies.
O E. By selling its own currencies.
Clear my choice
The supply of Canadian dollars on foreign exchange markets will increase in all of the
following cases except one. Which is the exception?
Select one:
O A Canadian businesses send money abroad in search of higher returns.
O B. imports into Canada rise.
O C. Canadian businesses pay dividends to foreigners.
O D. Fewer Canadians travel abroad.
Clear my choice
Suppose that, under a system of flexible exchange rates, Mexicans decide to increase their
investments in Canada. What will result?
Select one:
O A. Interest rates in Canada will fall.
B. The peso will appreciate and the Canadian dollar will depreciate in value.
O C. The peso will depreciate and the Canadian dollar will appreciate in value.
O D. The peso and the Canadian dollar will both appreciate in value.
O E. Mexicans will want to buy more Canadian products at the new.exchange rate.
Clear my choice
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