If Real Interest Rates in Canada Rise Relative to Real

question 87

Multiple Choice

If real interest rates in Canada rise relative to real interest rates in other countries,other things equal,what would likely occur?

• A)The exchange rate of the dollar would increase relative to other currencies.
• B)There would be an indeterminate effect on the exchange rate of the dollar relative to other currencies.
• C)There would likely be no effect on the exchange rate of the dollar relative to other currencies.
• D)The exchange rate of the dollar would decline relative to other currencies.

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