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) employment in the manufacturing sector will be reduced
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 wages will increase

Question

Quizplus · Accepted Answer

When the value of the Canadian dollar increases, it makes Canadian exports more expensive for foreign buyers, which reduces demand for Canadian goods. This can result in reduced employment in the manufacturing sector, as they are heavily dependent on exports.

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