If incomes increase in Canada,Canadians will buy more goods,including foreign goods.This increase in demand for foreign goods will cause an increase in the demand for euros.

Question

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When Canadian incomes increase, Canadians will have more money to spend on goods, including those from foreign countries. As they purchase more foreign goods, the demand for foreign currencies like the euro will increase.

If Incomes Increase in Canada,Canadians Will Buy More Goods,including Foreign