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 O A. fallen; appreciated OB. increased; appreciated OC. not changed; remained stationary OD. fallen; depreciated O E. increased; depreciated T

Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter21: International Finance
Section: Chapter Questions
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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.
O A. fallen; appreciated
O B. increased; appreciated
O C. not changed; remained stationary
O D. fallen; depreciated
O E. increased; depreciated
Transcribed Image Text: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. O A. fallen; appreciated O B. increased; appreciated O C. not changed; remained stationary O D. fallen; depreciated O E. increased; depreciated
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