Explain-inflation effects on exchange rates, Accounting Standards

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Explain-inflation effects on exchange rates

Inflation Effects on Exchange Rates

Response to the following problem:

Assume that the U.S. inflation rate becomes high relative to Canadian inflation. Other things being equal, how should this affect the

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

(b) supply of Canadian dollars for sale, and

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Accounting Standards: Explain-inflation effects on exchange rates

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Accounting Standards: Explain-inflation effects on exchange rates

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