The Rising Value of the Canadian Dollar Relative to the U.S

question 26

Multiple Choice

The rising value of the Canadian dollar relative to the U.S. dollar has which of the following effects?

• A) Canadian imports to the United States are down.
• B) Canadian vacationers pay higher costs for trips to the United States.
• C) Canadian consumers pay higher prices for U.S.-made goods.
• D) Canadian retailers in border towns lose customers to U.S. stores.

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Definitions:

Formal Relations

Social connections and interactions that are governed by officially established rules and structures.

Informal Relations

Interactions and connections between individuals or groups that are not governed by formal rules, structures, or procedures, often based on personal or community ties.

Keynesian Economics

An economic theory proposed by John Maynard Keynes, suggesting that government intervention through public policies can influence macroeconomic productivity and stabilize economies.

Neoliberalism

An ideology and policy model emphasizing free-market capitalism, deregulation, and reduction in government spending.