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.