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Consider Canada's Trade with the United States

Question 125

Multiple Choice

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.

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