The exchange rate (er), where er is the Canadian dollar price of the US dollar, will fall when:
A) real GDP in Canada increases.
B) real GDP in US falls.
C) the Bank of Canada tightens monetary policy.
D) Canadian consumers increase their preference for Florida vacations.

Question

Quizplus · Accepted Answer

The Answer of The exchange rate (er), where er is the Canadian dollar price of the US dollar, will fall when:
A) real GDP in Canada increases.
B) real GDP in US falls.
C) the Bank of Canada tightens monetary policy.
D) Canadian consumers increase their preference for Florida vacations.

The Exchange Rate (Er), Where Er Is the Canadian Dollar