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1] The Canadian government has hired you to analyze their Just Transition plan, which aims to facilitate the shift towards a low-carbon economy. You've been
1] The Canadian government has hired you to analyze their Just Transition plan, which aims to facilitate the shift towards a low-carbon economy. You've been assigned the task of identifying the potential risks associated with this plan. Your analysis will focus on a scenario where the substitution of oil and other raw materials with more environmentally-friendly products is successful. However, this transition resulted in a reduction in Canada's overall export levels. (a) (25 points) Under this scenario, what would be the impact on Canada's exchange rate in the long run? Only indicate whether an appreciation or depreciation is expected. (b) (25 points) Justify your previous answer (maximum 6 lines) (c) (25 points) What would be the consequences for Canadian consumers? (maximum 4 lines) (d) (25 points) What would be the consequences for the companies located in Canada
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