When the exchange rate moves from $1 = CAD1.5 to $1 = CAD1.66, it implies:
a. the U.S. dollar has depreciated in relation to the Canadian dollar.
b. U.S. imports of Canadian goods will rise.
c. the dollar price of the Canadian dollar has risen.
d. the Canadian dollar has appreciated in relation to the U.S. dollar.
e. Canadian imports of U.S. goods will rise.
b
You might also like to view...
If the realized real interest rate in an economy is 6%, the realized inflation rate is 8%, and the expected inflation rate is 8%, then the nominal interest rate in the economy is:
A) 2%. B) 8%. C) 20%. D) 14%.
Which of the following suggests that the “laws” of supply and demand are being disobeyed?
A. Outside forces disturbing an equilibrium B. Persistent shortages or surpluses C. The market never moving from an equilibrium D. “Other things” not always being equal
Why does the demand curve for Japanese yen slope down?
What will be an ideal response?
Sue fishes for cod at a cost of $2 per ton, while Dave fishes at a cost of $4 per ton. Both have one 1000 ITQ and the current market price is $5 per ton. If Dave sold his ITQ to Sue for $2000, he and Sue would:
A. Make the sale because they're both better off B. Not make the sale because Sue is better off and Dave is not C. Not make the sale because Dave is better of and Sue is not D. Not make the sale because neither is better off