If Exchange Rates Are Floating,a Contractionary Monetary Policy in Canada

question 62

Multiple Choice

If exchange rates are floating,a contractionary monetary policy in Canada will cause the dollar to ________ relative to other currencies and cause net capital outflows to ________.

• A) appreciate; increase
• B) appreciate; decrease
• C) depreciate; increase
• D) depreciate; decrease

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Definitions:

Center Line

A reference line that runs down the center of an object or space, commonly used in design and engineering to mark symmetry or alignment.

Aponeurosis

Extension of connective tissue beyond a muscle in round or flattened tendons; a means of insertion or origin of a flat muscle.

Fascia

A band or sheet of connective tissue, primarily collagen, beneath the skin that attaches, stabilizes, encloses, and separates muscles and other internal organs.

Tendon

A durable, pliable strip of connective tissue that links muscles with bones.