If the U.S. national income grows much faster than that of Canada, this would tend to make the U.S. dollar

Question

Quizplus · Accepted Answer

If the U.S. national income grows much faster than Canada's, Americans may increase their demand for Canadian goods and services, leading to a higher demand for Canadian dollars. This increased demand for Canadian dollars would cause the U.S. dollar to depreciate against the Canadian dollar.

If the US National Income Grows Much Faster Than That of Canada