If the Canadian dollar becomes stronger in relation to the Japanese yen
A) the prices of all Canadian-made products would rise in Japan and the prices of all Japanese-made products would fall in Canada.
B) there would be no effect on the prices of Canadian-made products sold in Japan.
C) the prices of all Canadian-made products would fall in Japan and the prices of all Japanese-made products would rise in Canada.
D) the prices of all Canadian-made products would fall in Japan and the prices of all Japanese-made products would fall in Canada.
E) the prices of all Canadian-made products would rise in Japan and the prices of all Japanese-made products would rise in Canada.

Question

Quizplus · Accepted Answer

When the Canadian dollar becomes stronger relative to the Japanese yen, it means that each Canadian dollar can buy more yen. As a result, Canadian-made products become more expensive in Japan because it takes more yen to buy the same amount of Canadian dollars. Conversely, Japanese-made products become cheaper in Canada because Canadians need fewer dollars to buy the same amount of yen, making Japanese products less expensive in Canadian dollars.

If the Canadian Dollar Becomes Stronger in Relation to the Japanese