If the rate of return is 3 percent in Mexico and 1 percent in Canada, the O A. rate of return in Mexico is expected to fall to 1 percent. O) B. rate of return in Canada is expected to rise to 3 percent. O C. law of one price predicts a single International rate of return between 3 percent and 1 percent. O D. Mexican peso is expected to appreciate against the Canadian dollar by 2 percent. O E. Mexican peso is expected to depreciate against the Canadian dollar by 2 percent.When the inflation rate is 4 percent, the Bank of Canada will O A. buy bonds to raise interest rates and slow down the economy. O B. sell bonds to raise interest rates and decrease aggregate demand O C. sell bonds to lower interest rates and accelerate the economy O D. buy bonds to lower interest rates and increase aggregate demand O E. do nothing, since an interest rate of 4 percent is desirable.When Michael from Ontario buys hockey tickets in Michigan to watch the Maple Leafs crush the Red Wings, the effect on the foreign exchange market is a O A. rightward shift of the supply curve of Canadian dollars. O B. leftward shift of the supply curve of U.S. dollars O C. leftward shift of the demand curve for U.S. dollars O D. rightward shift of the demand curve for Canadian dollars. O E. rightward shift of the supply curve of U.S. dollars