Which of the following would increase net exports in Canada?
A)A Canadian purchases 500 silver necklaces from Mexico.
B)The government of Mexico purchases 500 Bombardier C Series aircraft from the Canada.
C)A Mexican citizen purchases 25 shares of stock in Bombardier.
D)The Canadian government donates $5 million to Mexico to help victims of drought in Mexico.
E)Blackberry sells several of its patents to Apple.

Question

Quizplus · Accepted Answer

When the government of Mexico purchases 500 Bombardier C Series aircraft from Canada, it increases the demand for Canadian exports, thereby increasing net exports.

Answer: A
 When a Canadian purchases 500 silver necklaces from Mexico, it increases imports and decreases net exports. Therefore, this choice would not increase net exports.

Answer: C
 A Mexican citizen purchasing 25 shares of stock in Bombardier does not directly affect net exports as it is not a transaction of goods and services.

Answer: D
 When the Canadian government donates $5 million to Mexico, it does not directly affect net exports as it is not a transaction of goods and services.

Answer: E
 When Blackberry sells several of its patents to Apple, it is not a transaction of goods and services between Canada and Mexico. Therefore, this choice would not increase net exports.

Which of the Following Would Increase Net Exports in Canada