ECON.docx - CIA4U Ms B Doreen Gu CIA4U Ms B Doreen Gu According to the essay 2017 could be a bad year for the Canadian dollar Kohut Tania 2017 could be

# ECON.docx - CIA4U Ms B Doreen Gu CIA4U Ms B Doreen Gu...

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CIA4U Ms. B Jan 23, 2018 Doreen Gu CIA4U Ms. B Jan 23, 2018 Doreen Gu According to the essay “2017 could be a bad year for the Canadian dollar” Kohut, Tania. “2017 could be a bad year for the Canadian dollar.” (Global News, 17 Jan. 2017, globalnews.ca/news/3186072/loonie-canadian-dollar-2017/) we can see Canada is facing some challenging about the Canadian dollar. Canadian dollar Lonnie is are facing the depreciation because of the USA protectionism and OPEC agreement to cut oil production which means the question happens an
exchange rate. An exchange rate is a value at which one currency can be sold or exchanged for another country’s currency. The currency depreciation occurs when a country’s currency falls in value about another currency. The currency will sell for fewer units of foreign currency. The USA choose to be protectionism is because of their president: Donald Trump thinks the USA dollars is so strong that hurts their trading with the foreign country. The result that depreciation in Canadian dollars leads to is the cost of importing and travel abroad will increase, and the standard of living will be lower. The diagram: Market at CAD Price pf CAD in US S 73 cents 59 cents D1 D 0 Q1 Qe Quantity of CAD From the diagram that I draw we can see, the demand curve shifts to the left. The leftward shift in demand curve means that for any given price, less is demanded. That will create excess supply at the original equilibrium price which will push the price downwards. Basically, there are two reasons for the demand of Canadian dollar has
been decreasing. The first one is because of USA. First of all, the Canadian dollar is

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• Spring '18
• DOREEN
• Exchange Rate, United States dollar, Canadian dollar, Global News, USA dollars

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