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What Is the Effect of an Appreciation of the Canadian

Question 8

Multiple Choice

What is the effect of an appreciation of the Canadian dollar?


A) It increases the effective prices of both Canadian imports and exports.
B) It decreases the effective prices of both Canadian imports and exports.
C) It decreases the effective prices of Canadian goods to foreigners,but increases the prices of foreign goods to Canadians.
D) It increases the effective prices of Canadians goods to foreigners,but decreases the prices of foreign goods to Canadians.

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