A Canadian traveling to the United States converts $100 Canadian into 80 U.S. dollars. One month later he does the same thing and receives only 86 U.S. dollars. There are no transactions costs. The Canadian-U.S. exchange rate has and the Canadian dollar has relative to the U.S. dollar OA. fallen; appreciated OB. increased; appreciated OC. not changed; remained stationary OD. fallen; depreciated OE. increased; depreciated
A Canadian traveling to the United States converts $100 Canadian into 80 U.S. dollars. One month later he does the same thing and receives only 86 U.S. dollars. There are no transactions costs. The Canadian-U.S. exchange rate has and the Canadian dollar has relative to the U.S. dollar OA. fallen; appreciated OB. increased; appreciated OC. not changed; remained stationary OD. fallen; depreciated OE. increased; depreciated
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter13: Open-economy Macroeconomics: Basic Concepts
Section: Chapter Questions
Problem 4CQQ
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![A Canadian traveling to the United States converts $100 Canadian into 80 U.S. dollars. One month later he does the same thing and receives only 86 U.S. dollars.
There are no transactions costs. The Canadian-U.S. exchange rate has
OA. fallen; appreciated
OB. increased appreciated
OC. not changed; remained stationary
OD. fallen; depreciated
O E. increased; depreciated
and the Canadian dollar has
relative to the U.S. dollar](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffee5c91a-16f9-4faa-b80d-c41c55b3f7cf%2Fb8c71766-4551-410a-a1ea-d7e8a2566ebc%2Fsbkhcph_processed.png&w=3840&q=75)
Transcribed Image Text:A Canadian traveling to the United States converts $100 Canadian into 80 U.S. dollars. One month later he does the same thing and receives only 86 U.S. dollars.
There are no transactions costs. The Canadian-U.S. exchange rate has
OA. fallen; appreciated
OB. increased appreciated
OC. not changed; remained stationary
OD. fallen; depreciated
O E. increased; depreciated
and the Canadian dollar has
relative to the U.S. dollar
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