The Lower the Exchange Rate, the

question 106

Multiple Choice

The lower the exchange rate, the

• A)larger is the quantity of Canadian dollars supplied in the foreign exchange market.
• B)larger is the quantity of Canadian dollars demanded in the foreign exchange market.
• C)smaller is the quantity of Canadian dollars supplied in the foreign exchange market.
• D)smaller is the quantity of Canadian dollars demanded in the foreign exchange market.
• E)Both B and C are correct.

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