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Need help Many commentators are perplexed when they observe a depreciation of the Canadian dollar but not a reduction in the Canadian current account decit.

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Many commentators are perplexed when they observe a depreciation of the Canadian dollar but not a reduction in the Canadian current account decit. a. Suppose there is a substitution toward Canadian assets and away from assets in foreign countries. This would cause 0 A. a depreciation of the Canadian dollar, a rise in net exports and a fall in Canada's current account surplus. O B. an appreciation of the Canadian dollar, a fall in net exports and a rise in Canada's current account surplus. O c. a depreciation of the Canadian dollar, a rise in net exports and a rise in Canada's current account surplus. O D. an appreciation of the Canadian dollar, a fall in net exports and a fall in Canada's current account surplus. b. Suppose there is a reduction in the world's demand for Canadian goods. This would cause 0 A. an appreciation of the Canadian dollar, a rise in net exports and a rise in Canada's current account surplus. O B. a depreciation of the Canadian dollar, a fall in net exports and a fall in Canada's current account surplus. O c. an appreciation of the Canadian dollar, a rise in net exports and a fall in Canada's current account surplus. O D. a depreciation of the Canadian dollar, a fall in net exports and a rise in Canada's current account surplus. Basing on the steps above one can say that there {V a precise relationship between the value of the dollar and the current account balance. is is not

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