For a given Canadian real exchange rate, which of the following changes occur when the quantity of money in Canada changes?

Question

Answer

The Canadian price level changes and with a change in another country's price level, the Canadian dollar exchange rate does not change.

Answer

The Canadian dollar exchange rate changes and the Canadian price level does not change.

Answer

The Canadian price level changes and with no change in another country's price level, the Canadian dollar exchange rate changes.

Answer

Canada's real exchange rate changes but the Canadian dollar exchange rate does not change.

Answer

Neither the Canadian dollar exchange rate nor the Canadian price level change.

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