Assuming Canada Is the "Domestic" Country, If the Real Exchange

question 227

Multiple Choice

Assuming Canada is the "domestic" country, if the real exchange rate between Canada and France increases from 1.5 to 1.8

• A)the prices of Canadian goods and services have increased by 53% relative to France.
• B)the prices of Canadian goods and services have increased by 3% relative to France.
• C)the prices of Canadian goods and services have decreased by 16% relative to France.
• D)the prices of Canadian goods and services have increased by 20% relative to France.
• E)the prices of Canadian goods and services have decreased by 53% relative to France.

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Definitions:

Stock Dividend

Stock that is distributed to stockholders instead of cash or other assets.

Common Stock

Equity shares issued by a corporation as ownership evidence, granting voting rights and a share in the company's profits.

Dividends Payable

Liabilities on a company's balance sheet representing the amount of dividends declared by the board of directors but not yet paid to shareholders.

Cash Dividend

A payment made by a company out of its earnings to shareholders in the form of cash.