Canada is the second-largest trading partner for the United States (just recently surpassed by China). In 2017,

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Canada is the second-largest trading partner for the United States (just recently surpassed by China). In 2017, U.S. exports to Canada were more than $340 billion and imports from Canada totaled more than $332 billion.

On January 1, 2017, the exchange rate between the Canadian dollar and the U.S. dollar was 1.34 Canadian dollars = 1 U.S. dollar. On January 1, 2018, the exchange rate was 1.26 Canadian dollars = 1 U.S. dollar. Explain how this change in exchange rates could impact U.S. consumers and firms?

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Principles Of Macroeconomics

ISBN: 9781292303826

13th Global Edition

Authors: Karl E. Case,Ray C. Fair , Sharon E. Oster

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