If the Nominal Interest Rates in the United States and Canada

question 134

Multiple Choice

If the nominal interest rates in the United States and Canada are 8 percent and 12 percent, respectively, the real interest rates are the same, and the real exchange rate is fixed, then the market's expectation about the number of Canadian dollars to be received for a U.S. dollar a year from now will be that it will:

• A) decrease by 8 percent.
• B) decrease by 4 percent.
• C) increase by 4 percent.
• D) increase by 5 percent.

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Definitions:

Exclusive Provider Organization

A managed care plan where services are covered only if you use doctors, specialists, or hospitals in the plan's network, except in an emergency.

Health Maintenance Organization

A type of health insurance plan that often requires members to access healthcare services from a specific network of providers.

Allotted Time Period

The specific duration that is assigned or permitted for a particular task, event, or activity.

Modified Wave

A change or adaptation in a wave pattern, often referring to scheduled appointments or signals, to achieve a desired outcome or behavior.