Which of the Following Would Result from Devaluation of the Canadian

question 136

Multiple Choice

Which of the following would result from devaluation of the Canadian dollar?

• A) Canadian goods would sell for less abroad.
• B) The cost of foreign vacations for Canadian citizens would be reduced.
• C) Foreign firms would have to pay more to purchase Canadian assets.
• D) Canadian goods would be more expensive for American consumers.

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Definitions:

Overestimating

The act of assessing something more highly than its actual value or performance, often leading to errors in judgment or planning.

Structurally Unemployed

Describes individuals who are unemployed due to a mismatch between their skills and the jobs available, often because of technological change or fundamental shifts in an economy.

Pay Cut

A pay cut is a reduction in an employee’s salary or wages, often implemented by employers to reduce costs during financial hardships or organizational restructuring.

Imports

Goods and services bought from foreign countries for domestic consumption or use.