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An American Traveling to Canada Converts U

Question 60

Multiple Choice

An American traveling to Canada converts U.S.$100 into $118 Canadian dollars.One month later he does the same thing and receives $125 Canadian dollars.There are no transactions costs.The Canadian-U.S.exchange rate has


A) risen.
B) fallen.
C) neither risen nor fallen.
D) either risen or fallen; more information is required to determine the direction of movement with certainty.

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