There's been a real depreciation of the dollar over the past month.In the long run,you would expect the quantity of Canadian imports to ________ and the quantity of Canadian exports to ________.
A)fall;fall
B)rise;rise
C)fall;rise
D)rise;fall

Question

Quizplus · Accepted Answer

A real depreciation of the dollar makes Canadian goods cheaper for foreign buyers and foreign goods more expensive for Canadian buyers. Therefore, Canadian imports would fall and Canadian exports would rise.

There's Been a Real Depreciation of the Dollar Over the Past