Question: If the equilibrium exchange rate changes so that more British pounds are required to buy a Canadian dollar, then: Canadians will buy fewer British goods

If the equilibrium exchange rate changes so that more British pounds are required to buy a Canadian dollar, then:

Canadians will buy fewer British goods and services

the pound has appreciated in value

fewer Canadian goods and services will be demanded by the British

the dollar has depreciated in value

the Canadian interest rate necessarily rises

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