In August, the Canadian Wheat Harvest Is in and Exports

Multiple Choice

In August, the Canadian wheat harvest is in and exports to wheat-consuming nations begin in earnest. We would expect to see the Canadian rate of exchange

A) increase because there is an increase in the demand for Canadian wheat, which means an increase in the demand for Canadian dollars
B) decrease because there is an increase in the demand for Canadian wheat, which means an increase in the demand for Canadian dollars
C) increase because there is an increase in the demand for Canadian wheat, which means an increase in the supply of Canadian dollars
D) increase because there is a decrease in the demand for Canadian wheat, which means an increase in the supply of Canadian dollars
E) remains fixed because the exports create a counterbalance of imports