Question
The inflation rate in the U.S. is 3%, while the inflation rate in Canada is 4%. The current exchange rate for the Canadian dollar is
The inflation rate in the U.S. is 3%, while the inflation rate in Canada is 4%. The current exchange rate for the Canadian dollar is $0.740. After supply and demand for the Canadian dollar has adjusted in the manner suggested by purchasing power parity (PPP), the new exchange rate for the Canadian dollar will be:
options:
|
| $0.743 |
|
| 1% |
|
| $0.726 |
|
| $0.770 |
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Finance For Non Financial Managers
Authors: Pierre Bergeron
6th Edition
0176501630, 9780176501631
