An autonomous depreciation of the Canadian dollar makes Canadian goods ________ relative to foreign goods and results in a ________ in Canadian net exports, everything else held constant.
A) cheaper; decline
B) cheaper; rise
C) more expensive; decline
D) more expensive; rise

Question

Quizplus · Accepted Answer

An autonomous depreciation of the Canadian dollar makes Canadian goods cheaper to foreign buyers, increasing demand for these goods abroad and leading to a rise in Canadian net exports.

An Autonomous Depreciation of the Canadian Dollar Makes Canadian Goods