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true/ false/ unceirtain question


(2) Suppose that Canada currently has a small trade surplus. An appreciation in the value of the Canadian dollar will cause t

true/ false/ unceirtain question
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Answer #1

True, as the appreciation of the Canadian dollar will make it cheaper to import the goods from Foreign countries, therefore, the imports will increase and at the same time exports will fall because importers of Canadian goods will have to higher price.

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