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Economics
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21 Oct 2020

What is the main difference in demand and supply in the exchange market with respect to the other markets?

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Macroeconomics
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Exchange rates demand and supply shifts
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Darryn D'Souza
Darryn D'SouzaLv10
21 Oct 2020

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1. Supply and demand show the relationships between two main variables, price and quantity. How are they depicted in demand, and in supply? What other factors impact the relationships between price and quantity in supply and demand? 

2.If a market is in equilibrium, is it necessarily true that all buyers and sellers are satisfied with the market price? Briefly explain.

When the demand for Canada's exports rises:

a. supply of the Canadian dollar in the foreign exchange market falls

b. supply of the Canadian dollar in the foreign exchange market rises.

c. the Canadian dollar depreciates against all other currencies

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e. demand for the Canadian dollar in the foreign exchange market falls

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In preparing your essay, address the following questions:

1. What are the main characteristics of perfectly competitive markets? Do housing markets share these characteristics?

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