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Suppose the Exchange Rate Is $5 for a Euro;suppose Further

Question 56

Multiple Choice

Suppose the exchange rate is $5 for a euro;suppose further that the exchange rate falls to $4 for a euro.We would then expect to see


A) more exports to Europe since the price of the euro has risen.
B) fewer exports to Europe since the price of the euro has risen.
C) more Canadian imports from Europe since the price of the euro has fallen.
D) more Canadian exports since the price of the dollar has fallen.

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