Question
What drives exchange rate values For each of the following changes, holding all other variables constant , what is its effect on e ?(increase
What drives exchange rate values
For each of the following changes, holding all other variables constant, what is its effect on "e"?(increase or decrease of e). Today we will be looking at the United States (USD) and Canada (CAD) from the perspective of the United States
1. GDP Growth in US lower than expected
(increase or decrease)
2.Riots break out across Canada in response to a change in the National Hockey League rules threatening a collapse of the Canadian government
(increase or decrease)
3.Canada has a large budget deficit
(increase or decrease)
4.US inflation data lower than expected
(increase or decrease)
5.Stronger than expected employment data reported in US
(increase or decrease)
6.Unexpected surge in US imports from Canada
(increase or decrease)
7.Increase in Canadian Interest Rates
(increase or decrease)
8.Future spot rate decreases
(increase or decrease)
9.Discovery of new Oil Sands in Western Canada
(increase or decrease)
10.U.S. Stock Market is booming (year on year increase of 30%)
(increase or decrease)
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