Question
Initially, the real interest rates in the United States and Canada are equal to 6 percent. The real interest rate in the United States increases
Initially, the real interest rates in the United States and Canada are equal to 6 percent. The real interest rate in the United States increases to7percent while the real interest rate in Canada decreases to 5 percent.
(b) Using a graph for theCanadian dollarmarket, how will the value of theCanadian dollar change relative to the value of theUSdollar.
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Introduction to Behavioral Economics
Authors: David R. Just
1st edition
0470596228, 978-0470596227
