When the value of the Canadian dollar rises
A) both our imports and our exports become more expensive.
B) there is no change in the price of our imports and our exports.
C) our imports become more expensive and our exports become cheaper.
D) our imports become cheaper and our exports become more expensive.
E) both our imports and our exports become cheaper.

Question

Quizplus · Accepted Answer

When the value of the Canadian dollar rises, it means that each Canadian dollar can buy more foreign currency. This makes foreign goods and services cheaper for Canadians, reducing the cost of imports. Conversely, a stronger Canadian dollar makes Canadian goods and services more expensive for foreign buyers, thus increasing the cost of exports.

When the Value of the Canadian Dollar Rises