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2. The following graph illustrates hypothetical supply and demand curves for the Canadian dollar. Use the graph to answer the questions below. Price of Canadian

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2. The following graph illustrates hypothetical supply and demand curves for the Canadian dollar. Use the graph to answer the questions below. Price of Canadian dollars in U.S. dollars 1.00 S, .98 .96 .94 D, 20 40 60 80 100 Quantity of Canadian $ (billions) a. What is the quantity of dollars exchanged given Di and Si? b. What is this quantity worth in U.S. dollars? c. If the demand for the Canadian dollar decreases by 20, what would be the dollar volume of exchange if the exchange rate is fixed? d. What is the quantity of Canadian dollars exchanged if the exchange rate is flexible? e. What is this quantity worth in U.S. dollars

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