Suppose that Canada decides to peg its dollar ($C, or the loonie) to the U.S. dollar at an exchange rate of $C1 = $US1. Will there be pressure for the Canadian dollar to change in value against the U.S. dollar as a result of the leftward shift of the U.S. IS curve?
A) Yes, the value will appreciate.
B) Yes, the value will depreciate.
C) No, the value will not change in value.
D) Yes, but that pressure will be offset.
Ans: A) Yes, the value will appreciate.
Economics
You might also like to view...
The aggregate-demand curve shows that an increase in the price level
a) decreases the real value of goods and services demanded in the economy. b) decreases the dollar value of goods and services demanded in the economy. c) increases the real value of goods and services demanded in the economy. d) increases the dollar value of goods and services demanded in the economy.
Economics
What would be a "credible business plan" for the government to adopt?
What will be an ideal response?
Economics