If the Canadian dollar becomes weaker in international markets,the net effects will include
A)a decrease in short-run aggregate supply and an increase in aggregate demand.
B)an increase in short-run aggregate supply and a decrease in aggregate demand.
C)a decrease in both short-run aggregate supply and aggregate demand.
D)an increase in both short-run aggregate supply and aggregate demand.

Question

Quizplus · Accepted Answer

When the Canadian dollar becomes weaker in international markets, it makes Canadian goods cheaper for foreign buyers, increasing exports and thus aggregate demand. Conversely, imports become more expensive, which can increase the costs of production for businesses that rely on imported goods, potentially decreasing short-run aggregate supply.

If the Canadian Dollar Becomes Weaker in International Markets,the Net