If the demand by foreigners for Canadian government bonds increases,other things equal,what will happen to the exchange rate for the Canadian dollar and the amount of Canadian exports?
A) It will decrease the exchange rate of the dollar and increase exports.
B) It will decrease the exchange rate of the dollar and decrease exports.
C) It will increase the exchange rate of the dollar and decrease exports.
D) It will increase the exchange rate of the dollar and increase exports.
Correct Answer:
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