Multiple Choice
The demand for the US dollar in the foreign exchange market is a derived demand, and it is derived from:
A) imports from the US plus any capital inflows into the country.
B) imports from the US plus any capital outflows from the country.
C) exports to the US plus any capital outflows from the country.
D) exports to the US plus any capital inflows into the country.
Correct Answer:

Verified
Correct Answer:
Verified
Q48: If interest rates in Canada rise relative
Q49: When faced with a an aggregate demand
Q50: According to monetary transmission mechanism in the
Q51: If the domestic currency depreciates, raising the
Q52: If Canada were to adopt a fixed
Q54: A Chinese purchase of a Canadian-made Bombardier
Q55: If the Canadian exchange rate is $1.15Cdn
Q56: The strong appreciation of the Canadian dollar
Q57: A speculative attack on a currency involves
Q58: In an economy with a _ exchange