What 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 impact the amount of imports allowed into the country, but it would not directly affect Canada's net exports. The other options could have an effect on net exports. Capital flight from Canada would reduce investment in Canada and potentially weaken the Canadian dollar, making exports cheaper and more attractive. An increase in the government budget deficit could lead to increased borrowing and potentially higher interest rates, which would make Canadian exports less competitive. An increase in the world interest rate could strengthen the Canadian dollar and make exports more expensive, reducing net exports.

What Will NOT Change Canadian Net Exports