If the value of the Canadian dollar increases substantially relative to other currencies, what is the likely result?
A) Canadian exports and imports will increase.
B) Canadian exports and imports will decrease.
C) Canadian exports will increase and imports will decrease.
D) Canadian exports will decrease and imports will increase.

Question

Quizplus · Accepted Answer

When the value of the Canadian dollar increases, Canadian goods become more expensive for foreign buyers, leading to a decrease in exports. Conversely, foreign goods become cheaper for Canadians, leading to an increase in imports.

If the Value of the Canadian Dollar Increases Substantially Relative