Because of the rising level of debt in the United States after the 2008 recession,the nominal interest rate is expected to rise in the United States more than in Canada.According to the interest rate parity theorem,

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According to the interest rate parity theorem, when the nominal interest rate is expected to rise more in one country than in another country, the currency of the country with the expected higher interest rate will appreciate. In this case, the nominal interest rate is expected to rise more in the United States than in Canada, so the Canadian nominal exchange rate is expected to appreciate.

Because of the Rising Level of Debt in the United