Suppose Canada Has a Flexible Exchange Rate

question 73

Multiple Choice

Suppose Canada has a flexible exchange rate.If there is a rise in the world price of copper (a major Canadian export) ,other exporting sectors of the Canadian economy will likely ________ due to the resulting ________ of the Canadian dollar.

• A)contract; depreciation
• B)contract; appreciation
• C)expand; depreciation
• D)expand; appreciation
• E)expand; reduced speculative appeal

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Definitions:

Voracious Eaters

Individuals or animals with a very keen or insatiable appetite for food.

Motor Development

The progression of muscular coordination and the ability of individuals to move and control their bodies.

Cephalocaudal

From head to tail.

Proximodistal

From the inner part (or axis) of the body outward.