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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