If the Canadian dollar rises, our balance of trade will most likely ________ resulting in a ________ of jobs in the export industry.
A) rise; increase
B) decrease; decrease
C) decrease; increase
D) rise; decrease
E) none of these

Question

Quizplus · Accepted Answer

When the Canadian dollar rises, Canadian goods become more expensive for foreign buyers, leading to a decrease in exports. This decrease in exports negatively affects the balance of trade and can lead to a decrease in jobs in the export industry as demand for Canadian goods falls.

If the Canadian Dollar Rises, Our Balance of Trade Will