When the value of the Canadian dollar increases, which of the following is correct?
A) employment in all sectors of the economy will be reduced
B) real wages will be decreased
C) the price elasticity of demand for all goods and services will be reduced
D) union concerns about job security will be reduced
E) real value will increase

Question

Quizplus · Accepted Answer

When the value of the Canadian dollar increases, the real value of the currency also increases. This means that each dollar can buy more goods and services than before, reflecting an increase in purchasing power. This does not necessarily mean that employment, real wages, price elasticity of demand, or union concerns about job security will be directly affected in the ways described by the other options.

When the Value of the Canadian Dollar Increases, Which of the Following