Other things equal, if a change in the tastes of Canadian consumers causes them to purchase more foreign goods at each level of Canadian GDP:
A)unemployment will decrease domestically.
B)Canadian GDP will fall.
C)inflation will occur domestically.
D)Canadian real GDP will rise.

Question

Quizplus · Accepted Answer

The increased preferences for foreign goods by Canadian consumers will lead to a decrease in demand for domestically produced goods. As a result, Canadian producers will produce less and Canadian GDP will fall.

Other Things Equal, If a Change in the Tastes of Canadian