What Effect Does a Depreciation of the Dollar Have on Real

question 206

Multiple Choice

What effect does a depreciation of the dollar have on real GDP in Canada in the short run?

• A)Real GDP will fall.
• B)Real GDP will rise.
• C)Real GDP will be unaffected by the depreciation of the dollar.
• D)Real GDP will be unchanged, but nominal GDP will rise.
• E)Real GDP will fall, but nominal GDP will rise.

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