Given a System of Floating Exchange Rates, If Canada's Labor

question 187

Multiple Choice

Given a system of floating exchange rates, if Canada's labor productivity rises relative to the labor productivity of its trading partners, then

• A) Canadian imports will fall, and the dollar will appreciate.
• B) Canadian imports will fall, and the dollar will depreciate.
• C) Canadian imports will rise, and the dollar will appreciate.
• D) Canadian imports will rise, and the dollar will depreciate.

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