The table below shows different combinations of the foreign currency price of Canadian exports and the level of Canadian aggregate demand. All other things being equal, which combination, A, B, C or D, is the most likely consequence of a rise in the exchange rate of the Canadian dollar?
| The foreign currency price of Canadian exports | Canadian aggregate demand | |
|---|---|---|
| A | Falls | Rises |
| B | Rises | Falls |
| C | Falls | Falls |
| D | Rises | Rises |
The foreign currency price of Canadian exports falls, Canadian aggregate demand rises
The foreign currency price of Canadian exports rises, Canadian aggregate demand falls
The foreign currency price of Canadian exports falls, Canadian aggregate demand falls
The foreign currency price of Canadian exports rises, Canadian aggregate demand rises
