If Canada Runs a Trade Surplus with Mexico, and Exchange

question 127

Multiple Choice

If Canada runs a trade surplus with Mexico, and exchange rates are floating, then

• A) the peso will depreciate relative to the dollar.
• B) the dollar will depreciate relative to the peso.
• C) the prices of all foreign goods will fall for Canadians.
• D) the prices of all foreign goods will rise for Canadians.

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Definitions:

Positive Reinforcement

The strategy of encouraging a behavior by rewarding it each time it occurs to increase its frequency.

Resistance

The act of opposing or striving against something, which can manifest in various contexts such as physical forces, social movements, or individual behaviors against change.

Emotional High

A state of intense happiness or euphoria.

Performance

The act of carrying out a task with a specific outcome in mind, often measured against known standards of completeness, accuracy, and speed.