Initially trade between the United States and Canada is balanced. Then, if a change in the exchange rate reduces the U.S. dollar price of Canadian goods, ceteris paribus, we would expect

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When the U.S. dollar price of Canadian goods decreases, Canadian goods become cheaper for U.S. consumers, leading to an increase in U.S. imports from Canada. This results in a trade surplus for Canada, as it exports more to the U.S. than it imports from it, ceteris paribus.

Initially Trade Between the United States and Canada Is Balanced