If the Price Levels in the U

question 62

Multiple Choice

If the price levels in the U.S and in Canada are unchanged,but the nominal exchange rate (Canadian dollars per U.S.dollar) rises,then

• A)​the U.S.dollar appreciates and so U.S.net exports rise.
• B)the U.S.dollar appreciates and so U.S.net exports fall.
• C)the U.S.dollar depreciates and so U.S.net exports rise.
• D)the U.S.dollar depreciates and so U.S.net exports fall.

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