How will the exchange rate (foreign currency per dollar)respond to an increase in preference for imported goods in Canada in the long run?

Question

Quizplus · Accepted Answer

An increase in preference for imported goods in Canada will result in a higher demand for foreign currency (as Canadians will need to purchase the foreign currency to pay for the imports). As a result, the value of the Canadian dollar will decrease relative to foreign currencies in the long run, leading to a fall in the foreign currency per dollar exchange rate.

How Will the Exchange Rate (Foreign Currency Per Dollar)respond to an Increase