Canada followed the U.S.into recession in 2008, but not in 2001.One important reason why Canada did not follow the U.S.into recession in 2001 is
A)prices of natural resources and raw materials did not fall in 2001, but did in 2008.
B)the majority of Canada's trade partners were experiencing rapid inflation in 2008.
C)Canadian banks cut lending more in 2001 than they did in 2008.
D)the U.S.banned Canadian imports in 2008, but not in 2001.
E)Canada suffered a banking crisis in 2008, but not in 2001.

Question

Quizplus · Accepted Answer

Canada is a resource-rich country, and its economy heavily relies on the export of natural resources and raw materials. In 2001, the prices of these exports remained stable, while in 2008, they experienced a significant fall. This decline in prices hurt the Canadian economy, and the country entered into a recession along with the U.S. Therefore, the stability in the prices of natural resources and raw materials played a crucial role in preventing Canada from following the U.S. into recession in 2001.

Canada Followed the U