A fall in the value of the Canadian dollar
A) makes cross-border shopping a better bargain for Canadians.
B) makes imported products less expensive.
C) increases your income taxes.
D) decreases your income taxes.
E) increases Canadian exports.

Question

Quizplus · Accepted Answer

A fall in the value of the Canadian dollar makes Canadian goods cheaper for foreign buyers, thereby increasing Canadian exports. This is because as the Canadian dollar depreciates, Canadian goods and services become less expensive for those holding foreign currencies, leading to an increase in demand for Canadian exports.

A Fall in the Value of the Canadian Dollar