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Question: The C$ declined an average of more than 3% per year relative to the US$ during the 1990s, yet the inflation rate in Canada was almost 1% lower. Also, Canada has a positive trade balance, compared to the huge US trade deficit. Why has the C$ has been so weak? Do you expect it to turn around?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M93115081

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