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    Macroeconomics
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    Exam 12: An AD As Model of the Inflation Rate and Real GDP
  5. Question
    If Canada, with Flexible Exchange Rates, Has Lower Inflation Than
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If Canada, with Flexible Exchange Rates, Has Lower Inflation Than

Question 3

Question 3

Multiple Choice

If Canada, with flexible exchange rates, has lower inflation than the US, we would expect the Canadian dollar to __________ .


A) be in short supply
B) appreciate
C) depreciate
D) revalue

Correct Answer:

verifed

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