Suppose that we observe the following change in the international market for USD: р USD A B O The CAD woul appreciate. The CAD woul depreciate. S₁ S₂ D Q In this case, what wopuld we expect to happen to the price of CAD if the CAD-USD exchange rate was flexible?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Suppose that we observe the following change in the international market for USD:
a
USD
B
O The CAD woul appreciate.
O The CAD woul depreciate.
S₁
Q
In this case, what wopuld we expect to happen to the price of CAD if the CAD-USD exchange rate was
flexible?
Transcribed Image Text:Suppose that we observe the following change in the international market for USD: a USD B O The CAD woul appreciate. O The CAD woul depreciate. S₁ Q In this case, what wopuld we expect to happen to the price of CAD if the CAD-USD exchange rate was flexible?
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