The Canadian dollar would depreciate on the foreign exchange market if
A) Canadian consumer tastes change in favor of goods produced domestically.
B) the profitability of assets in Canada rises relative to the profitability of assets abroad.
C) Canada experiences a disastrous wheat-crop failure, thus leading to imports of more wheat.
D) Canada realizes technological improvements in the production of manufactured goods, thus leading to relatively low costs for Canada.
Correct Answer:
Verified
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Q27: Which theory of exchange-rate determination best views
Q29: Long-run exchange rate movements are governed by
Q30: Long-run determinants of the dollar's exchange value
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