Which Statement Best Describes the Consequences That Could Occur If

question 108

Multiple Choice

Which statement best describes the consequences that could occur if the Canadian real exchange rate appreciates relative to the euro?

• A) Canadian exports to Europe and European exports to Canada both rise.
• B) Canadian exports to Europe and European exports to Canada both fall.
• C) Canadian exports to Europe rise, and European exports to Canada fall.
• D) Canadian exports to Europe fall, and European exports to Canada rise.