Assuming a fixed exchange rate system,which of the following would contribute to a Canadian balance of payments surplus?
A) The USA increases the tariff on Canadian softwood lumber.
B) The popularity of Mexican tequila in Canada increases dramatically.
C) Canada increases its investment in Mexican oil fields.
D) Canada increases the number of military personal stationed abroad.
E) The number of Japanese tourists visiting Canada increases greatly.
Correct Answer:
Verified
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