Holding all else constant, a rise in interest rates in Canada will cause the dollar to appreciate in international exchange markets.

Name: Holding all else constant, a rise in interest rates in Canada will cause the dollar to appreciate in international exchange markets.
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Question

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Higher interest rates in Canada make Canadian dollar-denominated assets more attractive to investors, increasing demand for the Canadian dollar and causing it to appreciate in international exchange markets.

Holding All Else Constant, a Rise in Interest Rates in Canada