All other things being equal,a recession in Mexico would cause Canadian exports to Mexico to increase and Canadian aggregate demand to increase.

Question

Quizplus · Accepted Answer

A recession in Mexico would lead to a decrease in Mexican demand for Canadian exports, therefore Canadian exports to Mexico would decrease instead of increase. Additionally, a recession in Mexico would have negative spill-over effects on the global economy, which could impact Canadian aggregate demand.

All Other Things Being Equal,a Recession in Mexico Would Cause