What Is the Most Likely Effect of an Appreciation of the Canadian

question 127

Multiple Choice

What is the most likely effect of an appreciation of the Canadian real exchange rate on the quantity of Alberta beef demanded by French citizens?

• A) French citizens will buy less of Alberta beef.
• B) French citizens will buy more of Alberta beef.
• C) The quantity of Alberta beef demanded by French citizens will not change because the nominal exchange rate has not changed.
• D) The quantity of Alberta beef demanded by French citizens will not change because it is the French real interest rate that matters for French citizens.

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