You are a Canadian citizen who works in Toronto and owns a winter home in Phoenix, Arizona. When you spend the winters in Phoenix, an increase in the value of the Canadian dollar relative to the U.S. dollar should
A) help you as each Canadian dollar of your salary is now worth more U.S. dollars.
B) hurt you as each Canadian dollar of your salary is now worth less U.S. dollars.
C) hurt you as it is now more expensive to live in Phoenix since the Canadian dollar appreciation.
D) help you as it is now less expensive to live in Canada since the Canadian dollar appreciation.
Ans: A) help you as each Canadian dollar of your salary is now worth more U.S. dollars.
You might also like to view...
Savers are willing to lend out money because:
A) they prefer to spend money in the future rather than today. B) the rate of inflation in an economy is normally positive. C) of altruism. D) the rate of inflation in an economy is normally negative.
As the interest rate increases, the present value of a future payment
A) increases. B) decreases. C) does not change. D) approaches infinity.
Why did the unemployment rate drop from the early 1980s to 2000?
a. More adults than average dropped out of the labor force because they were discouraged. b. People became more productive and more workers were hired. c. The demographics of the labor force changed significantly during this period. d. The U.S. economy generated an additional 35 million jobs as it was growing.
Consider the following simple regression model y = 
0 + 1x1 + u. Suppose z is an instrument for x. Which of the following conditions denotes instrument relevance?
A. Cov(z,u) > 0
B. Cov(z,u) < 0
C. Cov(z,x) 
0
D. Cov(z,x z) = 0