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Assume That the Demand for the Canadian Dollar (C$)increases

Question 129

Essay

Assume that the demand for the Canadian dollar (C$)increases.Assume the increase in the dollar was due to currency speculation,What is the effect on:
a)the value of the Canadian exchange rate?
b)the level of aggregate demand?
c)the level of real GDP?
d)the price level?

Correct Answer:

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a)Appreciation
b)dec...

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