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As the Value of the Canadian Dollar Rises in the Foreign

Question 30

Multiple Choice

As the value of the Canadian dollar rises in the foreign exchange market, the


A) import effect increases the quantity of Canadian dollars supplied.
B) import effect increases the quantity of Canadian dollars demanded.
C) import effect causes a decrease in imports.
D) export effect causes an increase in exports.
E) export effect increases the quantity of Canadian dollars demanded.

Correct Answer:

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