Suppose That Canadian Incomes Rise Relative to British Incomes

question 8

Multiple Choice

Suppose that Canadian incomes rise relative to British incomes.How will each country's currency be affected?  

• A) The Canadian dollar will appreciate, and the British pound will depreciate. 
• B) The Canadian dollar will depreciate, and the British pound will appreciate. 
• C) The Canadian dollar will depreciate, and the British pound will remain constant. 
• D) The Canadian dollar will appreciate, and the British pound will remain constant.