​A Widget Costs $50 in the US and CAD$53 in Canada.The

question 38

Multiple Choice

​A widget costs $50 in the US and CAD$53 in Canada.The current exchange rate is 1USD=1.09CAD.Given purchasing power parity,the Canadian dollar would_______to equilibrate prices

• A)​Appreciate
• B)Depreciate
• C)Not change
• D)​None of the above

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Definitions:

Dividend Payments

Allocations of a segment of a company's profits, determined by the board of directors, to a category of its stockholders.

Current Liabilities

These are obligations or debts that a company is expected to pay within one year.

Current Assets

Assets that are expected to be converted into cash, sold or consumed within the next year or within the business's normal operating cycle.

Current Liabilities

Obligations of a financial nature due in a year or during the usual business cycle.