Suppose that the European Central Bank conducts a main refinancing sale. Everything else held constant, this would cause the demand for Canadian assets to ________ and the Canadian dollar will ________.

Question

Quizplus · Accepted Answer

A main refinancing sale by the European Central Bank would likely cause a decrease in demand for Canadian assets as investors may shift their investments towards the Eurozone. This decrease in demand would cause the Canadian dollar to depreciate.

Suppose That the European Central Bank Conducts a Main Refinancing