Asked by Sheldon Williams on Sep 24, 2024
Holding other things constant,a decrease in the inflation rate in the US compared to the Canadian economy will cause the demand for the Canadian dollar to _____________ and the supply to __________.
A) Increase;decrease
B) Increase,increase
C) Decrease;Increase
D) Decrease;Decrease
Inflation Rate
The percentage rate at which the general level of prices for goods and services is rising, eroding purchasing power over time.
Demand
The willingness and ability of consumers to purchase goods or services at a given price level.
Supply
The total amount of a good or service available for purchase at any given price level within a specific market.
- Comprehend the impact of variations in inflation rates across two economies on the supply and demand for their currencies.
Learning Objectives
- Comprehend the impact of variations in inflation rates across two economies on the supply and demand for their currencies.
Related questions
Holding Other Things Constant,a Decrease in the Inflation Rate in ...
Holding Other Things Constant,an Increase in the Inflation Rate in ...
Assume That the Inflation Rate in Canada Is 3% Over ...
Does an Increase in the Inflation Rate Increase or Decrease ...
Due to a Recession in the US,the Average Rate of ...