If the Canadian Dollar Depreciates Nominally by 10% While Canada

question 27

Multiple Choice

If the Canadian dollar depreciates nominally by 10% while Canada experiences 5% inflation and the US experiences 10% inflation,then in real terms,the Canadian dollar

• A) appreciates about 10%
• B) appreciates about 5%
• C) depreciates about 5%
• D) depreciates about 10%
• E) depreciates about 15%

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Definitions:

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