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Question #47644

If Canada runs a balance of payments surplus and exchange rates are floating ?

Options:

A) the value of other currencies will rise relative to the dollar

B) the dollar will depreciate relative to other currencies

C) the price of foreign goods will become cheaper to Canadians

D) the price of foreign goods will rise for Canadians

Answer: If Canada runs a balance of payments surplus and exchange rates are floating the price of foreign goods will become cheaper to Canadians.

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