Paula,a Canadian businessperson who closely follows international business conditions,recently read a newspaper article predicting that the value of the dollar will soon fall.If this article is correct,Paula should expect:
A)prices of imported goods to rise,and prices of Canadian goods sold overseas to rise as well.
B)prices of imported goods to rise,but prices of Canadian goods sold overseas to fall.
C)prices of imported goods to fall,and prices of Canadian goods sold overseas to fall as well.
D)prices of imported goods to fall,but prices of Canadian goods sold overseas to rise.

Question

Quizplus · Accepted Answer

If the value of the Canadian dollar falls, it becomes more expensive for Canadians to import goods from other countries. Therefore, prices of imported goods would rise. However, it also means that Canadian goods become cheaper for foreign buyers, making them more competitive in international markets and causing the prices of Canadian goods sold overseas to fall.

Paula,a Canadian Businessperson Who Closely Follows International Business Conditions,recently Read