If the U.S. puts tariffs on Canadian - manufactured products and Canada has a flexible exchange, which of the following will occur? a. there will be no permanent effects on Canada's aggregate demand curve b. Canadian interest rates will initially rise above the world interest rate c. the Canadian dollar will permanently appreciate d. Canadian net exports will increase in the long run
If the U.S. puts tariffs on Canadian - manufactured products and Canada has a flexible exchange, which of the following will occur? a. there will be no permanent effects on Canada's aggregate demand curve b. Canadian interest rates will initially rise above the world interest rate c. the Canadian dollar will permanently appreciate d. Canadian net exports will increase in the long run
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter29: Exchange Rates And International Capital Flows
Section: Chapter Questions
Problem 25CTQ: If a countrys currency is expected to appreciate in value, what would you think will be the impact...
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