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FIGURE 34-3 -Refer to Figure 34-3.An Increase in Demand for Foreign Exchange

Question 88

Multiple Choice

FIGURE 34-3 -Refer to Figure 34-3.An increase in demand for foreign exchange OR a decrease in the supply of foreign exchange may be due to A) foreign inflation in excess of domestic inflation. B) domestic inflation in excess of foreign inflation. C) equal rates of inflation. D) increased preference for Canadian goods. E) more Europeans travelling to Canada. FIGURE 34-3
-Refer to Figure 34-3.An increase in demand for foreign exchange OR a decrease in the supply of foreign exchange may be due to

A) foreign inflation in excess of domestic inflation.
B) domestic inflation in excess of foreign inflation.
C) equal rates of inflation.
D) increased preference for Canadian goods.
E) more Europeans travelling to Canada.

Correct Answer: