A depreciating Canadian dollar causes stagflation.

Question

Quizplus · Accepted Answer

Stagflation refers to a period of high inflation combined with stagnant or slow economic growth. A depreciating Canadian dollar can lead to inflationary pressures, as imports become more expensive and consumers face higher prices for goods and services. However, it does not necessarily cause or imply stagnant economic growth, as other factors such as government policy or global demand can still drive economic expansion.

A Depreciating Canadian Dollar Causes Stagflation