When the Bank of Canada lowers the overnight loans rate and the Canadian interest rate differential falls, the Canadian dollar _______ on the foreign exchange market and _______.
A) falls; the increase in imports is greater than the increase in exports
B) falls; aggregate demand decreases
C) rises; aggregate demand decreases
D) rises; U.S.aggregate demand decreases
E) falls; aggregate demand increases
Correct Answer:
Verified
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A)the
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A)increases
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