You Have Just Noticed That the Dollar Depreciated and You

question 43

Multiple Choice

You have just noticed that the dollar depreciated and you suspect that the Canadian government was behind this change.Which would you choose as the most likely cause of this depreciation in the real exchange rate?

• A)an increase in the money supply
• B)a decrease in the money supply
• C)a temporary increase in government purchases
• D)a temporary decrease in taxes

---

Definitions:

Product Adopter

An individual or entity that starts using a new product, often categorized by the timing of adoption, such as innovators, early adopters, early majority, late majority, and laggards.

Population Incidence

The number of new cases of a particular condition or disease in a specified population within a given time period, often used to measure risk and spread within epidemiological studies.

Product Life Cycle

A concept that describes the stages a product goes through from when it is first introduced into the market until it declines or is removed from the market.

Ethical Argument

A discussion that involves reasoning about what actions or practices are morally right or wrong.