Which of the following is true if the Bank of Canada allows the exchange rate to be flexible?
a. A recession in the United States would cause the exchange rate to appreciate and reduce Canada's aggregate demand.
b. A recession in the United States would not have any impact on the exchange rate.
c. A foreign shock such as imposing tariffs on goods coming to the United States would have a long-lasting effect on Canada's aggregate demand.
d. A recession in the United States would not have lasting effects on the position of Canada's aggregate-demand curve.