What Effect Does a Depreciation of the Dollar Have on Real

Multiple Choice

What effect does a depreciation of the dollar have on real GDP in Canada in the short run?

A) Real GDP will fall.
B) Real GDP will rise.
C) Real GDP will be unaffected by the depreciation of the dollar.
D) Real GDP will be unchanged, but nominal GDP will rise.
E) Real GDP will fall, but nominal GDP will rise.