Suppose that Canada and European Union are the only trading partners in the world.If interest rates in Canada are significantly lower than those in the European Union,we would expect the:
A) supply of dollars to fall,appreciating the dollar.
B) demand for dollars to fall,depreciating the dollar.
C) supply of euros to increase,depreciating the euro.
D) demand for euros to decrease,depreciating the euro.
Correct Answer:
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