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If Canada's inflation is higher than the U.S., the Canadian exports to the U.S. should ____, its imports should ____, and there is downward pressure on its currency's equilibrium value. A. decrease; increase B. decrease; decrease C. increase; decrease D. decrease; increase

If Canada's inflation is higher than the U.S., the Canadian exports to the U.S. should ____, its imports should ____, and there is downward pressure on its currency's equilibrium value. A. decrease; increase B. decrease; decrease C. increase; decrease D. decrease; increase

International Financial Management
International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
ChapterA6: Appendix 6: Government Intervention During The Asian Crisis
Section: Chapter Questions
Problem 6DQ
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If Canada's inflation is higher than the U.S., the Canadian exports to the U.S. should ____, its imports should ____, and there is downward pressure on its currency's equilibrium value.

A.

decrease; increase

B.
decrease; decrease
C.

increase; decrease

D.

decrease; increase 

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