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If there is perfect capital mobility between Canada and the US and a Canadian asset offers a return of five percent and an identical US asset offers a return of three percent, we would expect...

a.

The Canadian dollar should appreciate eight percent in the coming year.

b.

The Canadian dollar should depreciate two percent in the coming year.

c.

Perfect capital mobility will keep the US-Canada exchange rate constant.

d.

The Canadian dollar should appreciate two percent in the coming year.