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...

This preview shows page 1 - 4 out of 5 pages.

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
Image of page 1
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
Image of page 2
been decreasing. The first one is because of USA. First of all, the Canadian dollar is
Image of page 3
Image of page 4

You've reached the end of your free preview.

Want to read all 5 pages?

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

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes