Imagine that the value of the us dollar remains high compared to the canadian dollar for many months. what effect will this most likely have on the amount of goods the us exports to canada?
a.
it will decrease us exports to canada.
b.
it will increase us exports to canada greatly.
c.
it will increase us exports to canada slightly.
d.
the value of the dollar does not affect how much the us exports.

The correct option is A.

Explanation:

A government normally seeks to import from a country with which it has a positive exchange difference.

If the Canadian dollar is very low compared to the US dollar, it will be more expensive for Canada to buy goods from the US, so the country will look for an alternative option.

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