If the Inflation Rate in Canada Is Higher Than That

question 20

Multiple Choice

If the inflation rate in Canada is higher than that in Mexico and productivity is growing at a slower rate in Canada than in Mexico, then, in the long run, ________, everything else held constant.

• A) the Mexican peso will appreciate relative to the Canadian dollar
• B) the Mexican peso will depreciate relative to the Canadian dollar
• C) the Mexican peso will either appreciate, depreciate, or remain constant relative to the Canadian dollar
• D) there will be no effect on the Mexican peso relative to the Canadian dollar

---

Definitions:

Cardiomyopathy

A group of diseases that affect the heart muscle, often leading to heart failure and other complications.

Nephrology

A branch of medicine that focuses on the diagnosis and treatment of diseases of the kidneys.

Musculoskeletal

Pertains to the combined system of muscles and bones in the body, supporting movement, stability, and physical strength.

Neurological

Pertaining to the nervous system, including the brain, spinal cord, and nerves throughout the body.