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The diagram to the right most likely shows the impact on the Canadian economy of O A. a decrease in the worldwide demand for petroleum products, a major Canadian export good. O B. changes in world tastes away from Canadian goods. ASO O C. an increase in foreign incomes. O D. an outbreak of deflation outside of Canada. If the Bank of Canada makes no transactions in the foreign-exchange market, the Canadian dollar will undergo an appreciation a depreciation Use the three-point curve drawing tool to show how a flexible exchange rate serves as a "shock absorber" to the Price Level (P ) external shock depicted in the accompanying graph. AD Carefully follow the instructions above, and only draw the required objects. ADO Real GDP (Y)