If the dollar appreciates because of a capital inflow from Asia,the balance on the Canadian financial account will increase and the balance on the current account will decrease.

Question

Quizplus · Accepted Answer

When the dollar appreciates due to capital inflow, it indicates an increase in financial account inflows. This can lead to a decrease in the current account balance as exports become more expensive and imports cheaper.

If the Dollar Appreciates Because of a Capital Inflow from Asia,the