Multiple Choice
Assuming Canada is the "domestic" country, if the real exchange rate between Canada and France increases from 1.5 to 1.8
A) the prices of Canadian goods and services have increased by 53% relative to France.
B) the prices of Canadian goods and services have increased by 3% relative to France.
C) the prices of Canadian goods and services have decreased by 16% relative to France.
D) the prices of Canadian goods and services have increased by 20% relative to France.
E) the prices of Canadian goods and services have decreased by 53% relative to France.
Correct Answer:
Verified
Correct Answer:
Verified
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