If Canadian Interest Rate Differential Rises, the Exchange Rate Value

question 61

Multiple Choice

If Canadian interest rate differential rises, the exchange rate value of the dollar _______ and net exports _______.

• A)falls; decrease
• B)rises; increase
• C)falls; increase
• D)rises; decrease
• E)rises only if the U.S.interest rates rise concurrently; decrease

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Definitions:

Decision Rule

A guideline or protocol that dictates the choice among alternatives based on specific criteria, often used in decision-making processes to ensure consistency and rationality.

Internal Situation

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