If the Canadian dollar becomes weak compared to the Japanese yen, which of the following is likely to occur?
A) Demand for goods would be unaffected by currency changes
B) Japanese products would become cheaper in Canada
C) It would take fewer dollars to buy the same number of yen
D) Canadian products would become less expensive in Japan
E) Japanese demand for goods from Canada would fall

Question

Quizplus · Accepted Answer

When the Canadian dollar weakens compared to the Japanese yen, Canadian goods become cheaper in Japan because it costs fewer yen to buy the same amount of Canadian goods, making them more attractive to Japanese consumers.

If the Canadian Dollar Becomes Weak Compared to the Japanese