What would be the effect of an increase in the Canadian demand for foreign exchange?

Name: What would be the effect of an increase in the Canadian demand for foreign exchange?
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Question

Quizplus · Accepted Answer

An increase in Canadian demand for foreign exchange would lead to an increase in demand for foreign currencies, which would result in a decrease in the value of the Canadian dollar. This would make imports more expensive and exports cheaper, which could have an impact on trade and the current account balance.

What Would Be the Effect of an Increase in the Canadian