Consider Canada's Terms of Trade

question 37

Multiple Choice

Consider Canada's terms of trade.Canada is a net exporter of oil.An increase in the world price of oil,ceteris paribus,means that Canada's terms of trade will

• A)deteriorate.
• B)improve.
• C)not change.
• D)improve as long as all of Canada's production of oil is being exported.
• E)deteriorate as long as Canada exports more oil than it imports.