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Explain how the following factors affect the value of dollar vis--vis other currencies under a floating exchange rate system. a) Tariffs and quotas are placed
Explain how the following factors affect the value of dollar vis--vis other currencies under a floating exchange rate system. a) Tariffs and quotas are placed by the Canadian government on all imports into the country Demand by foreign consumers for the Canadian exports falls and the Canadian demand for imports rises. Rising interest rates in Canada relative to interest rates in Europe. Rising Canadian fiscal deficits reduce investor confidence and lead to capital outflows. b) c) d)
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