Multiple Choice
Suppose that the latest Consumer Price Index (CPI) release shows a higher inflation rate in the Canadian than was expected. Everything else held constant, the release of the CPI report would immediately cause the demand for Canadian assets to ________ and the Canadian dollar would ________.
A) increase; appreciate
B) increase; depreciate
C) decrease; appreciate
D) decrease; depreciate
Correct Answer:
Verified
Correct Answer:
Verified
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