An autonomous appreciation of the Canadian dollar makes Canadian goods ________ expensive relative to foreign goods which ________ net exports in Canada.
A) less; decreases
B) less; increases
C) more; decreases
D) more; increases

Question

Quizplus · Accepted Answer

An autonomous appreciation of the Canadian dollar means that the Canadian dollar is strengthening relative to other currencies. This makes Canadian goods more expensive for foreign buyers and thus decreases net exports in Canada.

An Autonomous Appreciation of the Canadian Dollar Makes Canadian Goods