Canadian aggregate demand increases immediately when
A) Honda Canada adds another shift of workers at its Ontario factory.
B) Blue Jays baseball fans visit Boston to see a game.
C) a Canadian high school student goes to Harvard.
D) an economist at York University buys 6 cases of wine from Chile.
E) Yankee baseball fans visit Toronto to see a game.

Question

Quizplus · Accepted Answer

When Yankee baseball fans visit Toronto to see a game, they spend money in Canada, which directly increases Canadian aggregate demand through consumption. Choices A, B, C, and D involve spending that either does not directly affect Canadian aggregate demand or represents an outflow of funds from Canada.

Canadian Aggregate Demand Increases Immediately When