Appreciation of the Canadian dollar will

A) intensify an existing disequilibrium in Canada's balance of payments.
B) make Canada's exports less expensive and its imports more expensive.
C) make Canada's exports more expensive and its imports less expensive.
D) make Canada's exports and imports both more expensive.

Appreciation of the Canadian dollar makes Canada's currency stronger relative to other currencies. This means that Canadian exports become more expensive for foreign buyers, which could decrease demand for Canadian products. On the other hand, imports become less expensive for Canadians, which could increase demand for foreign products. As a result, the balance of trade could become skewed towards imports, leading to a potential increase in the trade deficit.