How would an increase in the Canadian federal budget deficit affect the exchange rate in the market for Canadian dollars?
A)The exchange rate will increase.
B)The exchange rate will decrease.
C)The exchange rate will not be affected by a change in the federal budget deficit.
D)The impact of the increase in the federal budget deficit on the exchange rate cannot be predicted.

Question

Quizplus · Accepted Answer

The Answer of How would an increase in the Canadian federal budget deficit affect the exchange rate in the market for Canadian dollars?
A)The exchange rate will increase.
B)The exchange rate will decrease.
C)The exchange rate will not be affected by a change in the federal budget deficit.
D)The impact of the increase in the federal budget deficit on the exchange rate cannot be predicted.

How Would an Increase in the Canadian Federal Budget Deficit