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Suppose that Canada's real interest rate decreases relative to the interest rate in the U.S. 1. Other things being equal, how should this affect a)

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Suppose that Canada's real interest rate decreases relative to the interest rate in the U.S. 1. Other things being equal, how should this affect a) the Canadian demand for US dollars , b) the supply of U.S dollars for sale, and c) the equilibirum value of the U.S dollar. Do you expect the U.S dollar to appreciate or depreciate as a result of these changes. Explain 2. if you are a manager of a Canadian business that imports from the U.S, and you expect the equilibrium value of the US dollar to change according to the answer in item 1, what can you do to hedge your import business

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