If the U.S. puts tariffs on Canadian-manufactured products and Canada has a flexible exchange, which of the following will occur? a. there will be no permanent effects on Canada's aggregate demand curve b. Canadian interest rates will initially rise above the world interest rate c. the Canadian dollar will permanently appreciate d. Canadian net exports will increase in the long run
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S. puts tariffs on Canadian-manufactured products, it will make Canadian products more expensive for U.S. consumers, leading to a decrease in demand for Canadian goods in the U.S. market. Show more…
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