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