48.Suppose that the American economy goes into a severe recession. Under aflexible exchange rate system, what can we expect?

Select one:

a.That the supply of the Canadian dollar would decrease, leading to a depreciation of the Canadian dollar.

b.That the demand for the Canadian dollar would decrease, leading to a depreciation of the Canadian dollar.

c.That the demand for the Canadian dollar would increase, leading to an appreciation of the Canadian dollar.

d.That the supply of the Canadian dollar would increase, leading to an appreciation of the Canadian dollar.