Multiple Choice
If the Brazilian demand for Canadian exports rises at the same time that Canadian productivity rises relative to Brazilian productivity, then, in the long run, ________, everything else held constant.
A) the Brazilian real will appreciate relative to the Canadian dollar
B) the Brazilian real will depreciate relative to the Canadian dollar
C) the Brazilian real will either appreciate, depreciate, or remain constant relative to the Canadian dollar
D) there is no effect on the Brazilian real relative to the Canadian dollar
Correct Answer:
Verified
Correct Answer:
Verified
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