As the price level in Canada rises, the rest of the world (R.O.W.) buys fewer Canadian products and services.

Question

Quizplus · Accepted Answer

This is because as the price level in Canada increases, Canadian goods and services become relatively more expensive compared to the goods and services of other countries. This can lead to a decrease in demand for Canadian products and services from the R.O.W. as they look for cheaper alternatives.

As the Price Level in Canada Rises, the Rest of the World