A big wheat harvest that results in record Canadian export sales increases the demand for Canadian dollars in the foreign exchange market.

Question

Quizplus · Accepted Answer

When a country has higher export sales, it means that other countries are buying more of its products and therefore need to exchange their own currency for the country's currency (in this case, Canadian dollars). This increased demand for Canadian dollars in the foreign exchange market leads to an appreciation of the currency's value.

A Big Wheat Harvest That Results in Record Canadian Export