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a. Assume that the U.S. income level rises at a much higher rate than does the Canadian income level. Other things being equal, how should this affect the (1) U.S. demand for Canadian dollars, (2) supply of Canadian dollars for sale, and (3) equilibrium value of the Canadian dollar?

b. Assume that the Japanese government relaxes its controls on imports by Japanese companies. Other things being equal, how should this affect the (1) U.S. demand for Japanese yen, (2) supply of yen for sale, and (3) equilibrium value of the yen?

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Financial Management, Finance

Category:- Financial Management
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