If inflation in Canada slows relative to inflation in the United States, Canadians will
A)increase their demand for dollars.
B)decrease their demand for dollars.
C)increase their quantity demanded of dollars.
D)decrease their quantity demanded of dollars.

Question

Quizplus · Accepted Answer

If inflation in Canada slows relative to inflation in the United States, the Canadian dollar will appreciate in value compared to the US dollar, causing Canadians to decrease their demand for US dollars.

If Inflation in Canada Slows Relative to Inflation in the United