Question
1.Should inflation in the USA increase, what impact are we likely to see on our (Canadian) foreign sector? a)We are likely to see the dollar
1.Should inflation in the USA increase, what impact are we likely to see on our (Canadian) foreign sector?
a)We are likely to see the dollar value of our (Canadian) exports increase, and the dollar value of our imports decrease.
b)We are likely to see the dollar value of our (Canadian) exports decrease, and the dollar value of our imports increase.
c)We are likely to see no impact in our foreign sector because only exchange rate changes impact our foreign sector, not inflation rates.
d)We are likely to see no change in the dollar value of our exports, but the dollar value of our imports will definitely decrease because American goods are now more expensive for us to purchase.
which one is correct?
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