Consider the exchange rate between macedonia and canada. typically, exchange rates vary over time, sometimes quite dramatically. the scenarios present various changes that may affect the exchange rate. identify whether each scenario will tend to cause an appreciation, depreciation, or have no effect on the exchange rate of macedonian denars relative to canadian dollars. the magazine the economist publishes an article indicating that analysts expect the value of canadian dollars to rise relative to macedonian denars. the central bank in macedonia announces that it is going to raise interest rates on government bonds. based on a world bank report, the inflation rate in macedonia is going to be 2 % next year, whereas the inflation rate in canada is going to be 10.5 % . the price of a specific basket of goods in macedonia is roughly 1.6 times higher than the price of an identical basket of goods in canada even after adjusting for the exchange rate.