Prior to the onset of the global financial crisis and recession in 2008- 2009, Canada was experiencing strong growth in demand for its commodities (notably from China and India)which caused a(n) of its currency. This change in the exchange rate, in turn, caused a(n) in economic activity in Ontario and Quebec manufacturing industries.

Question

Quizplus · Accepted Answer

The strong growth in demand for commodities led to an appreciation of the Canadian dollar. An appreciation of the currency makes exports more expensive and imports cheaper, which can lead to a decrease in economic activity in manufacturing industries, particularly in Ontario and Quebec where manufacturing is a significant sector.

Prior to the Onset of the Global Financial Crisis and Recession