Exam

$(27)$ Alex Gordon

Consider how a re

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Question $23$ of $25$

Initially, the exchange rate between Macedonia and Canada is in equilibrium. Now, assume that there is a decrease in demand for Canadian dollars.

As a result of this change, what will happen to

Macedonian denars?

an appreciation

$$ a depreciation

no change

As a result of this change, what will happen to

Canadian dollars?

an appreciation

a depreciation

no change

Furthermore, a decrease in demand for Canadian dollars also results in winners and losers for various groups that are affected by the foreign exchange market. For the group in each example, indicate whether it is a winner or a loser in this change.

$$ A tourist from Macedonia going on vacation to Canada

$$ A mutual fund in Macedonia that purchases bonds in Canada

$$ A family from Canada visiting relatives in Macedonia

$$ A small firm in Canada that sells DoDads in Macedonia

$$ A large firm from Macedonia selling chemicals in Canada

$$ A multinational based in Canada purchasing land in Macedonia

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