An article on the website of the Financial Post, which is published in Canada, discussed the situation of Canadian teams that play in the National Hockey League (NHL). The majority of NHL teams are based in the United States. The article referred to “the adversity of a 75 or 80 cent Canadian dollar in a league where all players are paid in U.S. dollars [which] . . . looks like a recipe for financial trouble.”

a. What does the article mean by a “75 or 80 cent Canadian dollar”?

b. In what currency would an NHL team based in Canada receive most of its revenue?

c. Are Canadian NHL teams better off when the Canadian dollar increases in value relative to the U.S. dollar or when it decreases in value? Briefly explain.