Multiple Choice
How does a decrease in the federal budget deficit affect the demand for Canadian dollars and the supply of Canadian dollars on the foreign exchange market?
A) The demand for Canadian dollars falls, and the supply of Canadian dollars falls.
B) The demand for Canadian dollars rises, and the supply of Canadian dollars rises.
C) The demand for Canadian dollars rises, and the supply of Canadian dollars falls.
D) The demand for Canadian dollars falls, and the supply of Canadian dollars rises.
Correct Answer:
Verified
Correct Answer:
Verified
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