Given Floating Exchange Rates,a Simultaneous Decrease in the Canadian Demand

question 183

Multiple Choice

Given floating exchange rates,a simultaneous decrease in the Canadian demand for British products and increase in the British desire to invest in Canadian government securities would cause a (an) :

• A) Appreciation of the pound against the dollar
• B) Depreciation of the pound against the dollar
• C) Unchanged pound/dollar exchange rate
• D) None of the above

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Definitions:

Ridge

A long, narrow elevation of land, often formed by the continuous movement of the Earth's crust.

Ridges

Elevated geological features, typically linear, that can form through tectonic activities such as at mid-ocean ridges or due to erosional processes.

Sediment

Particulate material that is transported and deposited by water, wind, or ice, often forming layers on the Earth's surface.

Continental Collision

The event where two continental tectonic plates come together, creating significant geological features like mountain ranges.