Which of the following will not change Canadian net exports?
A)capital flight from Canada
B)an increase in the government budget deficit
C)the imposition of Canadian import quotas
D)an increase in the world interest rate

Question

Quizplus · Accepted Answer

Canadian import quotas would decrease imports and, as a result, would decrease net exports. Capital flight and an increase in the government budget deficit would decrease net exports as a result of a decrease in investor confidence in the Canadian economy. An increase in the world interest rate would lead to an appreciation of the Canadian dollar, which would decrease exports and increase imports, leading to a decrease in net exports.

Which of the Following Will Not Change Canadian Net Exports