If Exchange Rates Are Floating,an Expansionary Fiscal Policy in Canada

question 41

Multiple Choice

If exchange rates are floating,an expansionary fiscal 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:

Insurance Contract

A legally binding agreement between an insurer and the insured, outlining the terms for the insurer to compensate the insured for specific losses or damages.

Breach of Contract

Occurs when one party in a binding agreement fails to fulfill their obligations without a legitimate legal excuse.

Obligations

Duties or responsibilities enforced by law, contract, or a sense of duty that compel someone to act or refrain from acting in a certain manner.

Disability

A physical or mental condition that significantly restricts one's ability to perform one or more major life activities.