Suppose that Canadian incomes rise relative to British incomes.How will each country's currency be affected?
A) The Canadian dollar will appreciate, and the British pound will depreciate.
B) The Canadian dollar will depreciate, and the British pound will appreciate.
C) The Canadian dollar will depreciate, and the British pound will remain constant.
D) The Canadian dollar will appreciate, and the British pound will remain constant.
Correct Answer:
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Q94: What would be the effect of an
Q95: Exhibit 16-3 Q96: What is an exchange rate? Q97: Suppose the Canadian demand for British pounds Q98: Under what circumstances will the Canadian dollar Q100: Which of the following does NOT explain Q101: Suppose the British pound declines in value Q102: How are exchange rates determined? Q103: What will be the effect of a Q104: Exhibit 16-5
A) the price
A) They fluctuate
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