If the dollar appreciates against the Canadian dollar at a faster rate than the Canadian inflation rate exceeds the U.S. rate, then the U.S. dollar appears

A) depreciated.
B) overvalued.
C) undervalued.
D) None of the above.

B

Economics

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Explain the difference between a movement along the aggregate demand curve and a shift of the aggregate demand curve

What will be an ideal response?

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If a comparative advantage implies that a country can produce a product at a lower opportunity cost than another country then why do we see two countries often trading the same goods? For instance, for most agricultural products the U.S

has a comparative advantage. Japan, one of America's largest trading partners has a comparative advantage in the production of most economy cars. Explain what is going on here when we still see the U.S. exporting cars to Japan and the U.S. importing some foods from Japan.

Economics