If the US Puts Tariffs on Canadian-Manufactured Products and Canada Has a Has

question 120

Multiple Choice

If the U.S. puts tariffs on Canadian-manufactured products and Canada has a flexible exchange, which of the following will occur?

• A) Canadian interest rates will initially rise above the world interest rate
• B) there will be no permanent effects on Canada's aggregate demand curve
• C) Canadian net exports will increase in the long run
• D) the Canadian dollar will permanently appreciate

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The main or most significant factor influencing a decision or agreement in a contractual arrangement.

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