Author Question: The U.S. dollar will depreciate if the Canadian inflation rate falls from 5 percent to 3 percent. ... (Read 71 times)

sc00by25 · **on:** Jun 29, 2018

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