If Ontarians increase their purchases of Italian wine, assuming all else remains constant, this will ________ of Canada.
A)decrease the balance of trade
B)increase net exports
C)increase the current account balance
D)decrease the trade deficit
E)decrease the balance of payments

Question

Quizplus · Accepted Answer

When Ontarians increase their purchases of Italian wine, it means Canada is importing more from Italy. This increases the import bill, leading to a decrease in the balance of trade, as the balance of trade is calculated as exports minus imports.

If Ontarians Increase Their Purchases of Italian Wine, Assuming All