Question: Need help, and please explain right answers. Graphics in the second image. This shock is likely to cause an appreciation of the Canadian dollar on

Need help, and please explain right answers. Graphics in the second image.



This shock is likely to cause an appreciation of the Canadian dollar on foreign-exchange markets. As the Canadian dollar appreciates, there will be some effects on aggregate demand. Show these "secondary" effects in Figure 2. Use the three-point curve drawing tool to draw the new position of the AD curve. Carefully follow the instructions above, and only draw the required object. . ti hten The appropriate monetary policy response to a change in the exchange rate, in this case, would be to V g monetary policy. loosen b. Suppose, instead, that there is an increase in the demand by foreigners for Canadian nancial assets such as _ government bonds. Assuming no change in the exchange rate, the direct effect of this on Canadian aggregate 5'1"\" to the '5\" demand is that the AD curve Y _- ===:= i5 \"\"cmngec' This shock is likely to cause an appreciation of the Canadian dollar on foreign-exchange markets. As the Canadian shifts to the right dollar appreciates, there will be some effects on aggregate demand. Show these "secondary" effects in Figure 3. Use the three-point curve line drawing tool to draw the new position of the AD curve. Carefully follow the instructions above, and only draw the required object. The appropriate monetary policy response to a change in the exchange rate, in this case, would be to :l
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