Supply of and demand for the canadian dollar

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Draw a graph of the supply of and demand for the Canadian dollar (C$) by the U.S. market. Diagram the effect of each of the following on the exchange rate; state whether the effect is long, medium, or short run.

(a) More rapid growth in Canada than in the United States

(b) A rise in U.S. interest rates

(d) A recession in the United States

(e) Expectations of a future depreciation in the Canadian dollar.

Reference no: EM131112686

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