Multiple Choice
Suppose there is a rise in the world price of Canada's imports.If the Canadian demand for imports has a price elasticity less than 1 (inelastic) ,the demand for foreign exchange will ________ and the Canadian dollar will ________.
A) rise; appreciate
B) rise; depreciate
C) fall; appreciate
D) fall; depreciate
E) fall; and remain constant
Correct Answer:
Verified
Correct Answer:
Verified
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