If the Canadian dollar appreciates, this makes foreign goods cheaper for Canadians. As a result:
A)competitive pressure on Canadian businesses is increased, leading Canadian businesses to lower prices.
B)competitive pressure on Canadian businesses is released, leading some Canadian businesses to raise prices.
C)cost of inputs increase for Canadian businesses that use foreign-made inputs.
D)foreign buyers are now willing to pay more for Canadian goods.

Question

Quizplus · Accepted Answer

As foreign goods become cheaper, Canadian consumers are more likely to purchase them instead of buying from Canadian businesses. This puts pressure on Canadian businesses to lower their prices, thereby making their products more competitive with foreign goods.

If the Canadian Dollar Appreciates, This Makes Foreign Goods Cheaper