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3) In the foreign exchange market, a change in which of the following will result in a movement along the demand curve for Canadian dollars?

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3) In the foreign exchange market, a change in which of the following will result in a movement along the demand curve for Canadian dollars? A) the U.S. interest rate B) the Canadian interest rate C) the exchange rate D) the expected future exchange rate E) both A and B 4) If the price of a burger is $2.90 Canadian in Toronto and $3 U.S. in New York, and if purchasing power parity holds, then the exchange rate is A) $1 U.S. per Canadian dollar. B) $3 U.S. per Canadian dollar. C) 97 cents U.S. per Canadian dollar. D) 103 cents U.S. per Canadian dollar. E) none of the above

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