An increase in U.S. interest rates relative to Canadian interest rates will cause the U.S. dollar to appreciate.

Name: An increase in U.S. interest rates relative to Canadian interest rates will cause the U.S. dollar to appreciate.
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Question

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When U.S. interest rates increase in relation to Canadian interest rates, investors will seek higher returns by investing in U.S. assets, which will increase demand for the U.S. dollar and cause its value to appreciate.

An Increase in U