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.

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Definitions:

Annually Compounded Interest

Interest on a loan or investment that is calculated once a year, adding the interest to the principal sum and basing future interest calculations on this new principal.

Amortized Daily Interest

Interest on a loan computed each day using the balance of the loan on that day, leading to a variable interest charge per billing period.

Discount Rate

In discounted cash flow analysis, this rate is crucial for the evaluation of the present value of cash flows anticipated in the future.

Monthly Payments

Regular payments made over a period of time, often used in the context of loans or financing agreements.