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If Everything Else Held Constant, a Decrease in Relative Expected

Question 68

Multiple Choice

If everything else held constant, a decrease in relative expected inflation in Canada compared with the U.S.would imply:


A) An increase in the Canadian dollar versus the U.S.dollar
B) A decrease in the Canadian dollar versus the U.S.dollar
C) No change in the Canadian dollar versus the U.S.dollar
D) A decrease in the Canadian dollar versus the euro

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