Consider Canada's trade with the United States. Canadian exports to the U.S., Americans travelling in Canada, and U.S. capital flows into Canada all give rise to
A) a demand for U.S. dollars on the foreign- exchange market.
B) a lower value of the Canadian dollar.
C) a decrease in U.S. dollar reserves in Canada.
D) a depreciation of the Canadian dollar.
E) a supply of U.S. dollars on the foreign- exchange market.
Correct Answer:
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