If the euro appreciates against the Canadian dollar, French goods become:
A) less expensive to Canadians.
B) less expensive to the French.
C) more expensive to the French.
D) more expensive to Canadians.

Question

Quizplus · Accepted Answer

When the euro appreciates against the Canadian dollar, it means that each euro can buy more Canadian dollars than before. Therefore, for Canadians, the cost of purchasing goods priced in euros, such as French goods, increases because they have to spend more Canadian dollars to buy the same amount of euros. This makes French goods more expensive to Canadians.

If the Euro Appreciates Against the Canadian Dollar, French Goods