What will happen to Canadian net exports and the subsequent value of the Canadian dollar if there is a decrease in foreign demand for Canadian goods?

Question

Quizplus · Accepted Answer

A decrease in foreign demand for Canadian goods will lead to a decrease in Canadian net exports because fewer goods are being sold to foreign countries. This decrease in demand for Canadian goods will also result in a decrease in demand for the Canadian dollar, causing it to depreciate. As the value of the Canadian dollar falls, Canadian goods become cheaper for foreign buyers, which could eventually increase demand for Canadian exports and bring net exports back to normal levels.

What Will Happen to Canadian Net Exports and the Subsequent