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 hasOA. fallen; appreciatedOB. increased appreciatedOC. not changed; remained stationaryOD. fallen; depreciatedO E. increased; depreciatedand the Canadian dollar hasrelative to the U.S. dollar

Exchange rates represent the value of one currency in terms of another currency. Changes in exchange…

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 O E. increased; depreciated