Multiple Choice
Suppose Canada has a flexible exchange rate.If there is a decline in the world price of copper (a major Canadian export) ,other exporting sectors of the Canadian economy will likely ________ due to the resulting ________ of the Canadian dollar.
A) contract; depreciation
B) contract; appreciation
C) expand; depreciation
D) expand; appreciation
E) expand; reduced speculative appeal of
Correct Answer:
Verified
Correct Answer:
Verified
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