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Assume Canada Is the "Domestic" Country and China Is the "Foreign

Question 101

Multiple Choice

Assume Canada is the "domestic" country and China is the "foreign" country.Which of the following might increase the real exchange rate between Canada and China?


A) an appreciation of the yuan
B) a depreciation of the dollar
C) an increase in the price level in Canada
D) an increase in the price level of China

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