If the Canadian Dollar Were Replaced with a "New Dollar

question 28

Multiple Choice

If the Canadian dollar were replaced with a "new dollar" at an exchange rate of one new dollar for eight old dollars,then a mortgage of $100 000 would become a debt of _____ new dollars.

• A) 12 500
• B) 99 992
• C) 100 000
• D) 800 000

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Definitions:

Rent Controls

Government-imposed limits on the amount landlords can charge for leasing property, aimed at making housing more affordable for renters.

Rental Homes

Properties that owners lease to tenants for a predetermined rent and period.

Support Price

A price level set by the government or a regulatory body to ensure that producers receive a minimum price for their products.

Price Elasticities

Measures how responsive the quantity demanded or supplied of a good is to a change in its price, indicating its sensitivity.