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The Lower the Exchange Rate, the

Question 1

Multiple Choice

The lower the exchange rate, the


A) smaller is the quantity of Canadian dollars demanded in the foreign exchange market.
B) larger is the quantity of Canadian dollars demanded in the foreign exchange market.
C) smaller is the quantity of Canadian dollars supplied in the foreign exchange market.
D) larger is the quantity of Canadian dollars supplied in the foreign exchange market.
E) Both B and C are correct.

Correct Answer:

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