Assume that the canadian government increases its controls, Finance Basics

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Assume that the canadian government increases its controls

Question: Assume that the Canadian government increases its controls on imports from the U.S. by Canadian companies. The U.S. is a major trading partner for Canada, and it is expected the U.S. will retaliate by imposing restrictions on imports from Canada. Other things being equal, how should this affect the

(a) Canadian demand for U.S. dollars,

(b) supply of Canadian dollars for sale, and

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Finance Basics: Assume that the canadian government increases its controls

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