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Suppose the Canadian central bank wants to keep the exchange rate of the Canadian dollar with the ...

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Suppose the Canadian central bank wants to keep the exchange rate of the Canadian dollar with the ...

Suppose the Canadian central bank wants to keep the exchange rate of the Canadian dollar with the U.S. dollar constant over time. An increase in the demand for Canadian goods by American residents will lead the Canadian central bank to
A) sell American goods in exchange for Canadian dollars.
B) buy more Canadian goods with Canadian dollars.
C) increase the demand for Canadian dollars in the foreign exchange market.
D) increase the supply of Canadian dollars in the foreign exchange market.

Textbook

Economics Today: The Micro View

Edition: 19^th

Author: Miller

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