Under a system of floating exchange rates

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Under a system of floating exchange rates, which of the following conditions would tend to cause the Canadian dollar to appreciate in value against the U.S. dollar?

A. Canadian banks offer lower rates of interest than U.S. banks.

B. The rate of inflation in Canada is lower than in the U.S.

C. There is a rising demand for U.S. goods on the part of Canadian consumers.

D. Canadians perceive that the U.S. is about to experience higher economic growth.

Reference no: EM131045344

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