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Assume that the total value of investment transactions between united states and Canada is large. Also assume that total dollar value of trade transaction between
Assume that the total value of investment transactions between united states and Canada is large. Also assume that total dollar value of trade transaction between these two countries is very small. Now assume that Canadian inflation has suddenly increased, and Canadian Interest rates have suddenly increased. Overall, this would put pressure on the value of Canadian dollars. The interest rate effect should be pronounced that the inflation effect.
a: downward; less
b: upward; less
c: downward; more
d: upward; more
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