Multiple Choice
Given a system of floating exchange rates, if Canada's labor productivity rises relative to the labor productivity of its trading partners, then
A) Canadian imports will fall, and the dollar will appreciate.
B) Canadian imports will fall, and the dollar will depreciate.
C) Canadian imports will rise, and the dollar will appreciate.
D) Canadian imports will rise, and the dollar will depreciate.
Correct Answer:
Verified
Correct Answer:
Verified
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