In March 2009, the Canadian dollar was worth $0.78 U.S. dollars. In April 2011, the Canadian dollar was worth $1.06 U.S. dollars. What effect would this increase have on the trade balance between the United States and Canada?

a)Canadian imports will fall and Canadian exports will rise, so the Canadian trade balance will rise and the U.S. trade balance will fall.

b)Canadian imports will rise and Canadian exports will fall, so the Canadian trade balance will fall and the U.S. trade balance will rise.

c)Canadian imports will rise and Canadian exports will fall, so the Canadian trade balance will rise and the U.S. trade balance will fall.

d)Canadian imports will fall and Canadian exports will rise, so the Canadian trade balance will fall and the U.S. trade balance will rise.