Refer to the diagram below where D and S are Canada's demand for and supply of Swiss francs.At the equilibrium exchange rate, E, Canada's balance of payments is in equilibrium.A shift of the demand curve to D' might be the result of:
A)a relative decline in interest rates in Switzerland.
B)a reduction in Canada's relative price level.
C)a recession in Canada, which slows its rate of growth.
D)a relative decline in interest rates in Canada.

Question

Refer to the diagram below where D and S are Canada's demand for and supply of Swiss francs.At the equilibrium exchange rate, E, Canada's balance of payments is in equilibrium.A shift of the demand curve to D' might be the result of: 
A)a relative decline in interest rates in Switzerland. 
B)a reduction in Canada's relative price level. 
C)a recession in Canada, which slows its rate of growth. 
D)a relative decline in interest rates in Canada.

Quizplus · Accepted Answer

The Answer of Refer to the diagram below where D and S are Canada's demand for and supply of Swiss francs.At the equilibrium exchange rate, E, Canada's balance of payments is in equilibrium.A shift of the demand curve to D' might be the result of: 
A)a relative decline in interest rates in Switzerland. 
B)a reduction in Canada's relative price level. 
C)a recession in Canada, which slows its rate of growth. 
D)a relative decline in interest rates in Canada.

Refer to the Diagram Below Where D and S Are