Given Floating Exchange Rates,a Simultaneous Decrease in the Canadian Demand

question 183

Multiple Choice

Given floating exchange rates,a simultaneous decrease in the Canadian demand for British products and increase in the British desire to invest in Canadian government securities would cause a (an) :

• A) Appreciation of the pound against the dollar
• B) Depreciation of the pound against the dollar
• C) Unchanged pound/dollar exchange rate
• D) None of the above

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Definitions:

Pharynx

The pharynx is a muscular tube that connects the nasal and oral cavities to the esophagus and larynx, playing a key role in the respiratory and digestive systems.

Nasal Conchae

These are long, narrow, curled shelves of bone that protrude into the nasal cavity, increasing its surface area.

Epiglottis

A leaf-shaped flap of cartilage located behind the tongue, at the top of the larynx, which prevents food from entering the airways during swallowing.