Holding All Else Constant,an Increase in Preferences by Americans for Canadian

question 178

Multiple Choice

Holding all else constant,an increase in preferences by Americans for Canadian goods will _________ the demand for Canadian dollars in the foreign exchange market and _________ the equilibrium U.S.dollar-Canadian dollar exchange rate.

• A) increase;increase
• B) increase;decrease
• C) not change;not change
• D) decrease;increase
• E) decrease;decrease

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Definitions:

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