Assuming Canada is the "domestic" country, if the real exchange rate between Canada and Russia decreases from 28 to 23,
A) the prices of Canadian goods and services have decreased by 5 percent relative to Russia.
B) the prices of Canadian goods and services have increased by 25.5 percent relative to Russia.
C) the prices of Canadian goods and services have decreased by 18 percent relative to Russia.
D) the prices of Canadian goods and services have increased by 22 percent relative to Russia.
E) the prices of Canadian goods and services have increased by 4 percent relative to Russia.
Correct Answer:
Verified
Q156: Figure 14.4 Q157: If the demand for the yen increases Q158: Figure 14.4 Q159: If the price level in Canada is Q160: All else equal, a depreciation of the Q162: According to the saving and investment equation, Q163: If net exports are positive, Q164: If the Canadian dollar appreciates, how will Q165: A real appreciation of the Canadian dollar Q166: Canada has had negative net exports since
A)net foreign investment
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