The shift from a $0.90 to $0.75 exchange rate signifies U.S. dollar appreciation, Canadian dollar depreciation, and an anticipated increase in U.S. net exports.
When the exchange rate for one Canadian dollar decreases from $0.90 U.S. dollars to $0.75 U.S. dollars, it indicates that the U.S. dollar has appreciated. Appreciation refers to an increase in the value of a currency relative to another. In this context, the U.S. dollar is strengthening compared to the Canadian dollar.
Simultaneously, the Canadian dollar has depreciated as its value has declined concerning the U.S. dollar. Depreciation refers to a decrease in the value of a currency in the foreign exchange market.
The change in exchange rates influences international trade. As the U.S. dollar appreciates and the Canadian dollar depreciates, U.S. goods become relatively less expensive for Canadian consumers. This price advantage can boost U.S. exports, potentially leading to an increase in U.S. net exports. Therefore, the correct answers are: 1. appreciated, 2. depreciated, and 3. increase.