Other things being equal, if the Canadian dollar appreciates, there will be a _ in the demand for foreign imports, and the number of dollars offered in the foreign- exchange market will .

Question

Quizplus · Accepted Answer

When the Canadian dollar appreciates, foreign goods become cheaper for Canadians, leading to an increase in demand for imports. Consequently, more Canadian dollars are offered in the foreign-exchange market to purchase these imports, causing the number of dollars offered to rise.

Other Things Being Equal, If the Canadian Dollar Appreciates, There