18) The lower the exchange rate, the A) larger is the quantity of Canadian dollars supplied in the foreign exchange market. B) larger is the quantity of Canadian dollars demanded in the foreign exchange market. C) smaller is the quantity of Canadian dollars supplied in the foreign exchange market. D) smaller is the quantity of Canadian dollars demanded in the foreign exchange market E) B and C Answer: E

Question

Can you explain why the answer is E?

18) The lower the exchange rate, the
A) larger is the quantity of Canadian dollars supplied in the foreign exchange market.
B) larger is the quantity of Canadian dollars demanded in the foreign exchange market.
C) smaller is the quantity of Canadian dollars supplied in the foreign exchange market.
D) smaller is the quantity of Canadian dollars demanded in the foreign exchange market
E) B and C
Answer: E

Image Transcription

18) The lower the exchange rate, the A) larger is the quantity of Canadian dollars supplied in the foreign exchange market. B) larger is the quantity of Canadian dollars demanded in the foreign exchange market. C) smaller is the quantity of Canadian dollars supplied in the foreign exchange market. D) smaller is the quantity of Canadian dollars demanded in the foreign exchange market E) B and C Answer: E

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