Final answer:
In March 2013, the exchange rates were most favorable for an American buyer, as $1 could buy approximately 1.03 Canadian dollars, making it the best time to purchase Canadian goods like machinery due to the stronger U.S. dollar and potential savings on cost.
Step-by-step explanation:
Based on the information provided, we can argue that the most favorable exchange rates for an American buyer were in March 2013, as stated, $1 could buy about 1.03 Canadian dollars. Therefore, argument (a) that the most favorable exchange rates for an American were in March 2013 is supported. Furthermore, argument (b) that a US dollar could purchase the most Canadian dollars in March 2013 is correct and relevant. These two arguments imply that argument (c) March 2013 would have been the best time to purchase the machinery makes sense, since buying machinery when the U.S. dollar is strong means that you get more for your money, in this case, Canadian currency. This is advantageous for an American buyer looking to purchase Canadian goods like machinery, making use of the currency appreciation of their home currency against the Canadian dollar.
Considering the historical data, the U.S. dollar went through periods of both appreciation and depreciation against the Canadian dollar. Over the years, the value of $1 in U.S. currency measured in Canadian currency has fluctuated substantially, from $1.17 Canadian in 1980 to a high of $1.60 Canadian in early 2002, before a series of rises and falls that saw it at $1.28 Canadian in August 2022. The purchasing power of the U.S. dollar in Canada can deeply impact the cost of imported goods like machinery and creates opportunities for arbitrage.