Everything else held constant, a decrease in the value of the Canadian dollar relative to all foreign currencies means that the price of foreign goods purchased by Canadians ________.

Question

Quizplus · Accepted Answer

When the value of the Canadian dollar decreases relative to other foreign currencies, it means that each Canadian dollar can buy fewer units of the foreign currency. As a result, purchasing foreign goods becomes more expensive for Canadians, leading to a higher price of foreign goods. Therefore, the correct answer is A) increases.

Everything Else Held Constant, a Decrease in the Value of the Canadian