Which of the following changes would cause Canadian net exports to decrease?
A)a decrease in the real value of the dollar
B)a decrease in Canadian income
C)an increase in foreign income
D)a shift in demand by Canadian consumers away from domestically produced goods

Question

Quizplus · Accepted Answer

If there is a shift in demand by Canadian consumers away from domestically produced goods, it means they will be importing more foreign goods, causing Canadian net exports to decrease. A decrease in the real value of the dollar would make Canadian exports cheaper and more attractive, leading to an increase in net exports. An increase in foreign income and a decrease in Canadian income may affect Canadian exports, but they are not necessarily direct causes of a decrease in net exports.

Which of the Following Changes Would Cause Canadian Net Exports