If the Canadian dollar gets weaker relative to the Japanese yen,which of the following might happen?
A)Canadian trade surplus will fall.
B)Canadian trade deficit will fall.
C)Japanese trade surplus will rise.
D)Japanese trade deficit will fall.

Question

Quizplus · Accepted Answer

A weaker Canadian dollar makes Canadian goods cheaper for Japanese buyers, potentially increasing Canadian exports and reducing the trade deficit.

If the Canadian Dollar Gets Weaker Relative to the Japanese