Suppose the Canadian Nominal Exchange Rate Does Not Change,but Prices

question 233

Multiple Choice

Suppose the Canadian nominal exchange rate does not change,but prices rise faster in Canada than in all other countries.Based on this information,the Canadian real exchange rate

• A)does not change.
• B)rises.
• C)declines.
• D)There is not enough information to answer the question

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Definitions:

Title

The formal right of ownership of property, whether real or personal, tangible or intangible.

Bailment

The temporary placement of control over or possession of personal property by one person into the hands of another, under agreement.

Transfer of Exclusive Possession

The act of transferring the right to exclusively occupy or use property or goods to another party.

Car

A wheeled motor vehicle designed for the transportation of people, typically having four tires and powered by an internal combustion engine or electric motor.