All of the following,except one,will cause an increase in net exports in Canada.Which is the exception?
A)An increase in Canadian prices.
B)An increase in foreign prices.
C)An increase in foreign incomes.
D)A depreciation of the Canadian dollar.

Question

Quizplus · Accepted Answer

An increase in Canadian prices will make Canadian goods more expensive, leading to a decrease in exports and an increase in imports, resulting in a decrease in net exports. The other choices - B) an increase in foreign prices, C) an increase in foreign incomes, and D) a depreciation of the Canadian dollar - will all lead to an increase in net exports.

All of the Following,except One,will Cause an Increase in Net