What happens when the dollar appreciates?
A) Canadian exports decrease while imports increase.
B) Canadian exports and imports decrease.
C) Canadian exports and imports increase.
D) Canadian exports increase while imports decrease.

Question

Quizplus · Accepted Answer

When the dollar appreciates, it becomes more expensive for other countries to buy goods from Canada, leading to a decrease in Canadian exports. Conversely, a stronger dollar makes it cheaper for Canadians to buy foreign goods, increasing imports.

What Happens When the Dollar Appreciates