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For each of the following state a) if the demand or supply curve will shift left or right, (b) the effect on the exchange rate, and (c) if it is a long, medium, or short run effect based on the supply of and demand for the Canadian dollar by the U.S. market and explain your reasoning.
a. more rapid growth in Canada than in the U.S
b. a rise in U.S. interest rates
c. goods are more expensive in Canada than the united states
d. a recession in the United states
e. expectation of future depreciation in the Canadian dollar
What will be the effects of an increase in the money supply
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