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What Will Likely to Happen to Exchange Rates Involved in the Following

Question 115

Essay

What will likely to happen to exchange rates involved in the following cases?
(1)A fall in the Canadian interest rate relative to interest rates abroad (dollar).
(2)Higher inflation rate in Japan compared other countries (yen).
(3)A severe recession in Europe (euro).
(4)Canada imposes a 15% tariff on Japanese imported cars (dollar).

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(1)The demand for Canadian assets declin...

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