Which of the following would decrease the value of the Canadian dollar in the long run?

Question

Quizplus · Accepted Answer

When the demand for Canadian goods decreases relative to goods from other countries, this means that Canadian exports are not as attractive to foreign buyers. This leads to a decrease in demand for Canadian dollars on the foreign exchange market, reducing its value in the long run. A decrease in inflation in Canada (A) or an increase in Canadian interest rates (E) would actually increase the value of the Canadian dollar. An increase in U.S. tariffs (C) may have short-term effects on the value of the Canadian dollar but not necessarily in the long run. A decrease in the supply of Canadian dollars (D) may have short-term effects but the long-term value of a currency is determined by supply and demand factors.

Which of the Following Would Decrease the Value of the Canadian