Pressure for the canadian dollar to change in value

Assignment Help Business Economics

Reference no: EM131391918

Suppose that Canada decides to peg its dollar ($C, or the loonie) to the U.S. dollar at an exchange rate of $C1 = $US1. If the U.S. IS curve shifts to the left, will there be pressure for the Canadian dollar to change in value against the U.S. dollar as a result?

A. Yes, the value will appreciate.

B. Yes, the value will depreciate.

C. No, the value will not change in value.

D. Yes, but that pressure will be offset.

Reference no: EM131391918

Questions Cloud

Separate demand curves in two separate markets : A monopolist faces two separate demand curves in two separate markets: P1 = 72 - 3Ql and P2 = 90 - 2Q2. The total cost curve is TC = 6 + 6Q. Find the price elasticities at the two profit maximizing points

Consumption bundles is part of consumption possibilities : Abdul spends all of his income on food (F) and shelter (S). His budget line is given by the equation 5F + 20S = 100. Which of the following consumption bundles is part of his consumption possibilities?

Despite earning higher wage than those that are native born : Using a labor market graph and a few well chosen sentences a situation in which athletes that immigrate to the United States may be discriminated against, despite earning a higher wage than those that are native born.

Example of moral hazard : Which of the following is an example of moral hazard? With regard to income inequality, which of the following is most accurate?

Pressure for the canadian dollar to change in value : Suppose that Canada decides to peg its dollar ($C, or the loonie) to the U.S. dollar at an exchange rate of $C1 = $US1. If the U.S. IS curve shifts to the left, will there be pressure for the Canadian dollar to change in value against the U.S. dollar..

Identifiably different types of customers : Suppose a monopoly sells to two identifiably different types of customers, A and B, who are unable to practice arbitrage. The inverse demand curve for group A is PA = 18 - QA, and the inverse demand curve for group B is PB = 10 - QB. The monopolist i..

Unemployment and economic growth for next fiscal year : The Ministry of Finance and Central Bank for your country are faced with the decision of setting targets for inflation, unemployment and economic growth for the next fiscal year.

Monetary policy affect european interest rates : Suppose the European Central Bank decides to use monetary policy to offset the possible inflationary effects of European expansionary fiscal policy. How would the European Central Bank's monetary policy affect European interest rates?

The fed announces an inflation target : Suppose the Fed announces an inflation target of 3.90%. Suppose real GDP is forecasted to grow by 2.93% and that the velocity of money has been stable. What is the largest money growth rate the Fed could implement and still achieve the above mentione..

User Account

All Pages