An increase in the world price of oil causes the Canadian dollar to appreciate.

Name: An increase in the world price of oil causes the Canadian dollar to appreciate.
Brand: Quizplus
Rating: 4.8 (53 reviews)

Question

Quizplus · Accepted Answer

Canada is a major oil exporter, so an increase in the world price of oil will lead to an increase in demand for Canadian dollars, as buyers need to purchase Canadian dollars to pay for the oil. This increased demand for Canadian dollars strengthens the currency, causing it to appreciate.

An Increase in the World Price of Oil Causes the Canadian