Problem
Draw a graph of the supply of and demand for the Canadian dollar by the U.S. market. Diagram the effect of each of the following on the exchange rate; state in words whether the effect is long, medium, or short run; and explain your reasoning.
a. More rapid growth in Canada than in the United States
b. A rise in U.S. interest rates
c. Goods are more expensive in Canada than in the United States
d. A recession in the United States e. Expectations of a future depreciation in the Canadian dollar
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.