Given a System of Floating Exchange Rates,if Canada's Labor Productivity

question 90

Multiple Choice

Given a system of floating exchange rates,if Canada's labor productivity rises relative to the labor productivity of its trading partners:

• A) Canadian imports will fall and the dollar will appreciate
• B) Canadian imports will fall and the dollar will depreciate
• C) Canadian imports will rise and the dollar will appreciate
• D) Canadian imports will rise and the dollar will depreciate

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