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The Law of Demand for Foreign Exchange Tells Us That

Question 3

Multiple Choice

The law of demand for foreign exchange tells us that other things remaining the same,


A) the higher the exchange rate, the greater is the quantity of Canadian dollars demanded.
B) the higher the exchange rate, the greater is the demand for Canadian dollars.
C) the higher the exchange rate, the greater is the supply of Canadian dollars.
D) the higher the exchange rate, the smaller is the quantity of Canadian dollars demanded.
E) the lower the exchange rate, the greater is the supply of Canadian dollars.

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