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If the U.S. puts tariffs on Canadian-manufactured products and Canada has a flexible exchange, which of the following will occur? a. the Canadian dollar will
If the U.S. puts tariffs on Canadian-manufactured products and Canada has a flexible exchange, which of the following will occur? a. the Canadian dollar will permanently appreciate b. Canadian net exports will increase in the long run c. there will be no permanent effects on Canada's aggregate demand curve d. Canadian interest rates will initially rise above the world interest rate
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