Draw three diagrams illustrating the supply and demand for US dollars on the Canadian foreign exchange market. Using the diagrams describe and illustrate the impact of each of the following on supply and demand and the foreign exchange rate:
A) Unemployment increases in Canada.
B) Inflation in the US continues to be higher than in Canada.
C) The US Federal Reserve raises interest rates.

Question

Quizplus · Accepted Answer

The Answer of Draw three diagrams illustrating the supply and demand for US dollars on the Canadian foreign exchange market. Using the diagrams describe and illustrate the impact of each of the following on supply and demand and the foreign exchange rate:
A) Unemployment increases in Canada.
B) Inflation in the US continues to be higher than in Canada.
C) The US Federal Reserve raises interest rates.

Draw Three Diagrams Illustrating the Supply and Demand for US