If the Canadian dollar gets weaker relative to the Chinese yuan, what might happen?
A) Canadian trade surplus will fall.
B) Canadian trade deficit will fall.
C) Chinese trade surplus will rise.
D) Chinese trade deficit will fall.

Question

Quizplus · Accepted Answer

A weaker Canadian dollar makes Canadian exports cheaper and imports more expensive, potentially reducing the trade deficit as exports increase and imports decrease.

If the Canadian Dollar Gets Weaker Relative to the Chinese