10. Suppose that U.S. income rises. As a result, Canada's exports to the United States increase. What...

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10. Suppose that U.S. income rises. As a result, Canada's exports to the United States increase. What happens to the position of the aggregate-demand curve in Canada? Assume that the Bank of Canada allows the exchange rate to be flexible. How does your answer change if you assume that the Bank of Canada maintains a fixed exchange rate? Illustrate your answer with diagrams.

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