The U.S. dollar will depreciate if the Canadian inflation rate falls from 5 percent to 3 percent.

Name: The U.S. dollar will depreciate if the Canadian inflation rate falls from 5 percent to 3 percent.
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Question

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A decrease in the Canadian inflation rate would lead to a decrease in demand for Canadian dollars, which would lead to a decrease in its exchange rate relative to the U.S. dollar. As a result, the U.S. dollar would depreciate against the Canadian dollar.

The US Dollar Will Depreciate If the Canadian Inflation Rate Falls