The U.S. dollar will depreciate if the Canadian inflation rate ...

[sc00by25]

The U.S. dollar will depreciate if the Canadian inflation rate falls from 5 percent to 3 percent.
 
  Indicate whether the statement is true or false

Question 2

If the equilibrium exchange rate of the dollar is 1.10 euros per dollar and currently the exchange rate is 0.90 euros per dollar, then there is a ________ of dollars that leads to ________.
 
  A) surplus; the supply curve of dollars shifting leftward
  B) shortage; a rise in the exchange rate
  C) surplus; a rise in the exchange rate
  D) shortage; the supply curve of dollars shifting rightward
  E) shortage; the demand curve for dollars shifting rightward

[Brenm]

Answer to Question 1

TRUE

Answer to Question 2

B

[sc00by25]

Excellent

[milbourne11]

TYSM