In Type One, we start with an increase in foreign demand for our goods and services and, hence, an increase in aggregate demand. The Canadian dollar strengthens in response, increasing the relative price of Canadian goods. This increase offsets some of the higher foreign demand by encouraging imports and dampening exports.
yen  100  Financial assets (total) Cash and deposits Equity Investment trusts  2,000 1,800  2.3  2.5  2.6  90 80  1,600  27.3  29.0  Otherあ  33.8  Insurance, pension, and standardized guaranteesああ  18.2  Equity  9.6  Investment trustsああ  70 10.5  1,400  60  1,200  4.2 1.4  50  1,000  あああ  37.8  40  800  1.8 Debt securities  600  30  400  20  200  10  0  0  FY 90  %  54.0  13.2 4.2  95  00  05  10  15  20  34.3  Cash and deposits  13.3 Japan  United States  Euro area  Notes: 1.