If the Rate of Inflation in Canada Falls Relative to the Rate

question 36

Multiple Choice

If the rate of inflation in Canada falls relative to the rate of inflation in foreign nations,what will happen to the amount of Canadian net exports and subsequently the exchange rate for the Canadian dollar?

• A)It will increase net exports, which in turn will increase the value of the dollar.
• B)It will decrease net exports, which in turn will increase the value of the dollar.
• C)It will decrease net exports, which in turn will decrease the value of the dollar.
• D)It will increase net exports, which in turn will decrease the value of the dollar.

---

Definitions:

Wealthy

Individuals or entities possessing a substantial amount of money, assets, or property, affording them a high standard of living.

Land Ownership

The legal right, recognized by law, to possess and use a specific parcel of land.

Common Resource

A resource like air, water, or fish stocks, that is not owned privately but is available for use by everyone, often leading to overuse and depletion.

Treaty Negotiations

Treaty negotiations refer to the process of discussions and bargaining between nations or parties to reach a formal agreement that is binding and recognized internationally.