question archive The Canadian one dollar coin is colloquially referred to as the "loonie" (there’s also a two dollar coin commonly called the "toonie" but that’s not important for our purposes)
The Canadian one dollar coin is colloquially referred to as the "loonie" (there’s also a two dollar coin commonly called the "toonie" but that’s not important for our purposes)
Subject:EconomicsPrice: Bought3
The Canadian one dollar coin is colloquially referred to as the "loonie" (there’s also a two dollar coin commonly called the "toonie" but that’s not important for our purposes). Explain in words and draw a graph of the exchange market between the U.S. dollar and the loonie to show how the exchange rate will change in response to the following events. Assume that the exchange rate is expressed in dollars per loonie.
A. Calgary, Alberta, becomes an increasingly popular vacation destination for millions of tourists from the U.S. (4 points)
B. Uncertainty regarding the stability of the loonie's value causes many Canadians to shift their savings to U.S. financial institutions. (4 points)
C. The Fed dramatically increases the supply of dollars in the U.S. economy. (4 points)
