For Canada

Question

For Canada

Quizplus · Accepted Answer

Canada is a relatively small open economy, meaning that it is heavily dependent on international trade for its economic success. Its trade with the rest of the world accounts for a significant portion of its GDP, making the small open economy assumption a realistic one. Option A is incorrect as Canada's trade with the rest of the world is significant. Option C is incorrect as there has been an increase in Canada's trade with the rest of the world since the 1950s. Option D is incorrect as the small open economy assumption is realistic. Option E is incorrect as small open economy models are relevant in understanding the Canadian economy.