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Author Question: Suppose that the nominal exchange rate between the U.S. dollar and the Canadian dollar is 0.75 U.S. ... (Read 102 times)

V@ndy87

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Suppose that the nominal exchange rate between the U.S. dollar and the Canadian dollar is 0.75 U.S. dollars per Canadian dollar. If Canada's rate of inflation is 0 percent and the U.S. rate is 10 percent, then the real exchange rate for the U.S. dollar will
 
  A) appreciate by about 9 percent.
  B) appreciate by 10 percent.
  C) depreciate by about 9 percent.
  D) depreciate by 10 percent.

Question 2

A free trade agreement plus a common set of tariffs toward non-members is called
 
  A) a common market.
  B) a customs union.
  C) a free trade area.
  D) an economic union.


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briseldagonzales

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V@ndy87

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Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review


epscape

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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