If the Canadian dollar appreciates which of the following is true?

Question

Quizplus · Accepted Answer

When the Canadian dollar appreciates, the effective price of Canadian exports increases. This means that foreign buyers will need to spend more of their own currency to purchase the same goods, making Canadian exports less attractive and potentially leading to a decrease in total exports from Canada. Additionally, Canadian importers may benefit as they can purchase foreign goods for less in terms of Canadian dollars. The change in Canadian interest rates is not necessarily linked to the appreciation of the currency.

If the Canadian Dollar Appreciates Which of the Following Is