Multiple Choice
Which statements are true? If the exchange rate changes from US$1 = C$0.90 to US$1 = C$1.10, then the:
1) Canadian dollar appreciated against the U.S. dollar.
2) Canadian dollar depreciated against the U.S. dollar.
3) U.S. dollar appreciated against the Canadian dollar.
4) U.S. dollar depreciated against the Canadian dollar.
A) 1 and 3
B) 1 and 4
C) 2 and 3
D) 2 and 4
E) 3 only
Correct Answer:

Verified
Correct Answer:
Verified
Q122: An appreciating Canadian dollar causes a negative
Q123: When a student from Toronto pays her
Q124: If the rate of return is 3
Q125: A strong Canadian dollar hurts exporters.
Q126: A fixed exchange rate is determined by
Q128: Which statements are true? If the exchange
Q129: If the rate of return is 1
Q130: When the Canadian money supply decreases, the<br>A)
Q131: The indirect effect on Canadian inflation of
Q132: If investors are confident that the Canadian