For each of the following events, indicate if they are likely to cause an increase, a decrease or no change to the Canadian exchange rate with the US. The US Government passes a bill for medical care for all funded via a special income tax The US restricts its imports of Canadian lumber The US Federal Reserve pursues a new round of quantitative easing, while the Bank of Canada does not. Creditors begin to lose faith in the US dollar 1. Canadian exchange rate with the US is likely to increase 2. Canadian exchange rate with the US is likely to decrease 3. Canadian exchange rate with the US will remain mostly unchanged

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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For each of the following events, indicate if they are likely to cause an increase, a
decrease or no change to the Canadian exchange rate with the US.
The US Government passes
a bill for medical care for all
funded via a special income
tax
The US restricts its imports
of Canadian lumber
The US Federal Reserve
pursues a new round of
quantitative easing, while
the Bank of Canada does
not.
Creditors begin to lose faith
in the US dollar
1. Canadian exchange rate with the
US is likely to increase
2. Canadian exchange rate with the
US is likely to decrease
3. Canadian exchange rate with the
US will remain mostly unchanged
Transcribed Image Text:For each of the following events, indicate if they are likely to cause an increase, a decrease or no change to the Canadian exchange rate with the US. The US Government passes a bill for medical care for all funded via a special income tax The US restricts its imports of Canadian lumber The US Federal Reserve pursues a new round of quantitative easing, while the Bank of Canada does not. Creditors begin to lose faith in the US dollar 1. Canadian exchange rate with the US is likely to increase 2. Canadian exchange rate with the US is likely to decrease 3. Canadian exchange rate with the US will remain mostly unchanged
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