Consider the market for Canadian dollars. If the exchange rate rises from 2 Mexican pesos per dollar to 4 Mexican pesos per dollar,
A) a movement up along the demand curve for Canadian dollars occurs.
B) a movement down along the demand curve for Canadian dollars occurs.
C) the demand for Canadian dollars increases.
D) the demand for Canadian dollars decreases.
E) the supply of Canadian dollars increases.
Correct Answer:
Verified
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