How does an increase in the world demand for Canadian exports change the foreign exchange market for Canadian dollars?

Question

Answer

The supply of Canadian dollars increases and the demand for Canadian dollars decreases.

Answer

Today's exchange rate doesn't change, but the expected future exchange rate falls.

Answer

The demand for Canadian dollars increases and the supply of Canadian dollars decreases.

Answer

The Canadian dollar exchange rate rises.

Answer

Both C and D are correct.

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