An increase in the supply of the Canadian dollar will have what effect?

Name: An increase in the supply of the Canadian dollar will have what effect?
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Question

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An increase in the supply of the Canadian dollar will lead to a decrease in its value, causing a fall in the exchange rate. As a result, it will become cheaper for other countries to buy Canadian goods and services, increasing the quantity of Canadian dollars traded. Therefore, the exchange rate will fall, but the quantity of dollars traded will rise.

An Increase in the Supply of the Canadian Dollar Will