An increase in the number of international students in Canada
A)has no effect on the Canadian current account.
B)decreases the Canadian current account.
C)decreases Canadian imports.
D)increases the Canadian current account.

Question

Quizplus · Accepted Answer

An increase in the number of international students in Canada is likely to increase the Canadian current account as it would lead to an increase in export earnings from the education sector (i.e. tuition fees paid by international students). This would add to the credit side of the current account and result in a positive effect on the balance of payments.

An Increase in the Number of International Students in Canada