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If the Canadian Dollar Appreciates, How Will Aggregate Demand in Canada

Question 140

Multiple Choice

If the Canadian dollar appreciates, how will aggregate demand in Canada be affected?


A) Aggregate demand will increase as exports increase and imports decrease.
B) Aggregate demand will increase as imports increase and exports decrease.
C) Aggregate demand will decrease as imports increase and exports decrease.
D) Aggregate demand will decrease as exports increase and imports decrease.
E) Aggregate demand will become more sensitive to price level.

Correct Answer:

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