Under a System of Flexible (Floating)exchange Rates,a Higher Canadian Trade

question 40

Multiple Choice

Under a system of flexible (floating) exchange rates,a higher Canadian trade deficit with Mexico will tend to cause:

• A)the Canadian government to ration pesos to Canadian importers
• B)a flow of gold from Canada to Mexico
• C)an increase in the price of Canadian dollars, in terms of Mexican pesos
• D)a decrease in the price of Canadian dollars, in terms of Mexican pesos
• E)a flow of gold from Mexico to Canada

---

Definitions:

Cytokines

Small proteins that are crucial in controlling the growth and activity of other immune system cells and blood cells.

Fibroblasts

A type of cell found in connective tissue which produces collagen and other fibers.

Leukocytes

White blood cells that are part of the immune system, protecting the body against both infectious disease and foreign invaders.

Retroviruses

A group of RNA viruses that insert a DNA copy of their genome into the host cell in order to replicate, e.g., HIV.