Question: Other things being equal, a fall in the average level of prices in Canada a. Will cause Canadian residents to switch from domestic goods and

Other things being equal, a fall in the average level of prices in Canada

a. Will cause Canadian residents to switch from domestic goods and services to relatively cheaper U.S. imports

b. Will result in an appreciation of the Canadian currency.

c. Will cause U.S. customers to substitute U.S. goods and services for the relatively more expensive Canadian goods.

d. Will result in a depreciation of the Canadian currency.

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