I am writing essay on impact of movements in exchange rate on the economy.
I am trying to understand if movements in the exchange rate effect the size of the CAD. I understand the effect of movement of the exchange rate on the BGS but as the CAD is largely because of the net incomes deficit how would appreciation of the dollar increase the CAD or is the reason because of the deterioration of the BGS?
I am trying to understand if movements in the exchange rate effect the size of the CAD. I understand the effect of movement of the exchange rate on the BGS but as the CAD is largely because of the net incomes deficit how would appreciation of the dollar increase the CAD or is the reason because of the deterioration of the BGS?
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