If the Canadian dollar becomes weaker in international foreign exchange markets,________ goods become cheaper.One result of this is that net exports decrease.

Question

Quizplus · Accepted Answer

When the Canadian dollar becomes weaker in international foreign exchange markets, its exported goods become cheaper for foreign consumers to purchase. As a result, exports become more attractive to foreign buyers, which can help stimulate economic growth. However, if the Canadian dollar continues to weaken, it may also increase the cost of imported goods, which can lead to higher prices for consumers and less demand for foreign goods. Ultimately, the net effect of a weaker Canadian dollar on the economy will depend on a variety of factors, including the strength of the global economy, Canada's overall trade balance, and the competitiveness of its exports.

If the Canadian Dollar Becomes Weaker in International Foreign Exchange