Suppose the Exchange Rate Between British Pounds and Canadian Dollars

question 45

Multiple Choice

Suppose the exchange rate between British pounds and Canadian dollars is originally $2.50 per pound.If it then changes to $3 for 1 pound,what will happen to the imports of British goods into Canada?

• A)They will tend to fall.
• B)They will tend to stay the same.
• C)They will tend to change in an indeterminate direction.
• D)They will tend to rise.

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Definitions:

Double-Blind Procedure

A research method used to prevent bias, where neither the participants nor the experimenters know who is receiving a particular treatment.

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Expensive Brand

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Experimental Group

In research, a group of subjects who are exposed to the variable under investigation, allowing researchers to assess the effect of this variable.