Which statements are true? If the exchange rate changes from US$1 = C$0.90 to US$1 = C$1.10, then the:
1) Canadian dollar appreciated against the U.S. dollar.
2) Canadian dollar depreciated against the U.S. dollar.
3) U.S. dollar appreciated against the Canadian dollar.
4) U.S. dollar depreciated against the Canadian dollar.
A) 1 and 3
B) 1 and 4
C) 2 and 3
D) 2 and 4
E) 3 only
Correct Answer:
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