If the Canadian Dollar Increases in Value Relative to Other

question 95

Multiple Choice

If the Canadian dollar increases in value relative to other currencies, how does this affect the aggregate demand curve?

• A)This will move the economy up along a stationary aggregate demand curve.
• B)This will move the economy down along a stationary aggregate demand curve.
• C)This will shift the aggregate demand curve to the left.
• D)This will shift the aggregate demand curve to the right.
• E)This will shift the aggregate supply curve to the left as the result of foreign direct investment.

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Definitions:

Investing Transactions

Financial activities related to the acquisition or sale of long-term assets and investments not used in the normal course of business.

Acquisition

The process of obtaining control of another company by purchasing its shares or assets.

Bonds

A form of interest-bearing notes payable issued by corporations, universities, and governmental entities.

Investing Activity

Transactions involving the purchase and sale of long-term assets and other investments not considered as cash equivalents.