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Refer to Figure 15-2. Suppose the USD is initially fixed at a value of B Canadian dollars and the demand for USD falls from D2

Refer to Figure 15-2. Suppose the USD is initially fixed at a value of B Canadian dollars and the demand for USD falls from D2 to D1. Which of the following is TRUE regarding this information? a. The exchange rate would rise from B to A. b. A balance of payments surplus would exist with Canada in the amount of F - E. c. A balance of payments surplus would exist with Canada in the amount of G - H. d. A balance of payments deficit would exist with Canada in the amount of F - E

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