Suppose There Is a Rise in the World Price of Canada's

question 28

Multiple Choice

Suppose there is a rise in the world price of Canada's imports.If the Canadian demand for imports has a price elasticity less than 1 (inelastic) ,the demand for foreign exchange will ________ and the Canadian dollar will ________.

• A)rise; appreciate
• B)rise; depreciate
• C)fall; appreciate
• D)fall; depreciate
• E)fall; and remain constant

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Definitions:

Partial Equity Method

An accounting method used when an investing company has significant influence over, but not full control of, another company, requiring the investor to record its share of profits.

Equity Method

The Equity Method is an accounting technique used to record investments in other companies, recognizing the income earned from the investment proportional to ownership.

Dividends

Cash disbursements issued to shareholders by a company, commonly originating from the organization's earnings.

Total Assets

The sum of all resources owned or controlled by a company, valued in terms of money, which can be used to produce goods or services.