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How is each of the following events likely to affect the value of the Canadian dollar relative to the euro ? Be very specific in
How is each of the following events likely to affect the value of the Canadian dollar relative to the euro? Be very specific in your answers and brief.
- Interest rates in the European Union increase relative to those in Canada.
- The European price level rises relative to the Canadian price level
- A Canadian company buys Canadian dollars with US dollars on the foreign exchange market
- The price level in Canada rises relative to the price level in Europe
- A Canadian company invests Canadian dollars to buy a European company in US dollars (not in euros).
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