A change in the exchange rate, other things remaining the same, brings a
A)change in the quantity of Canadian dollars demanded and a movement along the demand curve.
B)change in the quantity of Canadian dollars demanded with no movement along the demand curve.
C)shift of the demand curve for Canadian dollars with a movement along the demand curve.
D)change in the quantity of Canadian dollars demanded and a shift of the demand curve.
E)shift of the demand curve for Canadian dollars with no movement along the demand curve.

Question

Quizplus · Accepted Answer

A change in the exchange rate, all else being constant, will affect the price of and demand for goods and services, as well as the quantity of Canadian dollars demanded. The change in exchange rate results in a movement along the demand curve, resulting in a change in the quantity of Canadian dollars demanded.

A Change in the Exchange Rate, Other Things Remaining the Same