Under a Floating Exchange Rate System, Other Things Equal, Which

question 142

Multiple Choice

Under a floating exchange rate system, other things equal, which of the following best leads to a depreciation in the value of the Canadian dollar?

• A) a decrease in the Canadian money supply
• B) a decrease in the Canadian interest rate
• C) an increase in the national income of Canada's trade partners
• D) rising inflation rates in Canada's trade partners

---

Definitions:

Major World Leader

A preeminent political figure who plays a significant or dominant role in global or regional affairs.

Federal Issue

A matter or problem under the jurisdiction of a federal government, concerning policies or laws that affect the entire country.

The Draft

The compulsory enlistment of individuals into the armed forces, often implemented during times of war or conflict.

Upper Class

The highest social class, typically comprising individuals or families with significant wealth, power, and influence in society.