Suppose the Canadian demand for British pounds increases.Which of the following will occur?
A) The dollar price of a British pound will rise.
B) The dollar price of a British pound will fall.
C) The exchange rate between Canadian dollars and British pounds will be out of equilibrium.
D) The British pound will fall in value against the Canadian dollar.
Correct Answer:
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Q95: Exhibit 16-3 Q96: What is an exchange rate? Q98: Under what circumstances will the Canadian dollar Q99: Suppose that Canadian incomes rise relative to Q100: Which of the following does NOT explain Q101: Suppose the British pound declines in value Q102: How are exchange rates determined?
A) the price
A) They fluctuate
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