Justin spends his holidays in Mexico,where he spends $2500.This will
A)reduce the Canadian current account by $2500.
B)increase the Canadian current account by $2500.
C)have no change in the Canadian current account.
D)increase Canadian exports by $2500.

Question

Quizplus · Accepted Answer

When Justin spends $2500 in Mexico, he is importing goods and services from there. This means that the money is leaving Canada's economy and the Canadian current account balance will decrease by $2500.

Justin Spends His Holidays in Mexico,where He Spends $2500