If real incomes in foreign nations are growing less rapidly than Canadian real incomes,what would this result in?
A) There would likely be no effect on the exchange rate of the dollar relative to other currencies.
B) The exchange rate of the dollar would increase relative to other currencies.
C) There would be an indeterminate effect on the exchange rate of the dollar relative to other currencies.
D) The exchange rate of the dollar would decline relative to other currencies.
Correct Answer:
Verified
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