Author Question: If one U.S. dollar could be exchanged for one Canadian dollar in 1970, and one U.S. dollar can now ... (Read 188 times)

altibaby · **on:** Jun 29, 2018

If one U.S. dollar could be exchanged for one Canadian dollar in 1970, and one U.S. dollar can now be exchanged for 1.13 Canadian dollars, which of the following is true?

A) The U.S. dollar lost value against the Canadian dollar.
B) The Canadian dollar lost value against the U.S. dollar.
C) The Canadian dollar gained value against the U.S. dollar.
D) Both A and C are true.

Question 2

Suppose a developing country experiences a reduction in machinery and capital equipment as foreign entrepreneurs decrease the amount of investment in the economy. As a result,

A) the economy will move up along the long-run aggregate supply curve.
B) the long-run aggregate supply curve will shift to the left.
C) the long-run aggregate supply curve will shift to the right.
D) the economy will move down along the long-run aggregate supply curve.