An increase in Canadian real GDP will:
A) increase Canadian exports of goods and services.
B) increase US imports of Canadian goods and services.
C) lower real GDP in Canada's major trading partners.
D) reduce the current account balance in the Canadian balance of payments.

Question

Quizplus · Accepted Answer

An increase in Canadian real GDP typically leads to higher domestic consumption, including imports, which can reduce the current account balance as imports rise relative to exports.

An Increase in Canadian Real GDP Will