Suppose C $1.00 was worth US $0.809, and after nine months, the Canadian dollar increased to $1.50.This is an example of:
A)deflation.
B)foreign currency fluctuation.
C)inflation.
D)recession.
E)shoe leather cost.

Question

Quizplus · Accepted Answer

This is an example of foreign currency fluctuation, as the exchange rate between the Canadian and US dollar changed over time. Deflation, inflation, recession, and shoe leather cost do not accurately describe this situation.