Assume the u. s. dollar and the canadian dollar are traded in flexible currency markets.
which of the following would cause the u. s. dollar to depreciate relative to the canadian dollar?
a. higher price level in canada relative to the united states.
b. higher interest rates in the united states relative to canada.
c. lower interest rates in the united states relative to canada.
d. decreasing gdp in the united states than in canada.
e. increasing gdp in canada relative to the united states.
Answers: 2
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Assume the u. s. dollar and the canadian dollar are traded in flexible currency markets.
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