If the Equilibrium Exchange Rate Changes So That More British

question 12

Multiple Choice

If the equilibrium exchange rate changes so that more British pounds are required to buy a Canadian dollar,then:

• A)Canadians will buy fewer British goods and services
• B)the pound has appreciated in value
• C)fewer Canadian goods and services will be demanded by the British
• D)the dollar has depreciated in value
• E)the Canadian interest rate necessarily rises

---

Definitions:

Inefficient Government Program

A public initiative that fails to achieve desired outcomes effectively, often due to misallocation of resources or administrative issues.

Logrolling

The practice of exchanging favors, especially in politics, by reciprocal voting for each other's proposed legislation.

Vote Trading

A strategy where individuals or parties exchange support for each other's preferred choices or policies, often seen in political contexts.

Legislators

Elected officials who have the authority to make or amend laws.