When the Canadian dollar is worth $0.85 USD, what is the effect on Canadian-produced goods?
A) They are attractive to U.S. buyers because they are a lower price than U.S.-produced goods.
B) They are unattractive to U.S. buyers because they risk supporting a weak economy.
C) They are unattractive to U.S. buyers because they are a higher price than U.S.-produced goods.
D) They are attractive to U.S. buyers because the higher Canadian quality justifies the high prices.
E) They are unattractive to U.S. buyers because they are subject to tariffs and duties.

Question

Quizplus · Accepted Answer

When the Canadian dollar is worth $0.85 USD, Canadian-produced goods are cheaper for U.S. buyers, making them more attractive compared to U.S.-produced goods.

When the Canadian Dollar Is Worth $0