Which statement is consistent with an appreciation of the dollar?
A) Canadian goods become less expensive relative to foreign goods, which makes exports rise and imports fall.
B) Canadian goods become less expensive relative to foreign goods, which makes exports fall and imports rise.
C) Canadian goods become more expensive relative to foreign goods, which makes exports rise and imports fall.
D) Canadian goods become more expensive relative to foreign goods, which makes exports fall and imports rise.

Question

Quizplus · Accepted Answer

An appreciation of the dollar means that the Canadian dollar is worth more compared to foreign currencies. This means that Canadian goods become more expensive relative to foreign goods, which makes exports fall and imports rise.

Which Statement Is Consistent with an Appreciation of the Dollar