If the Price Level Increases in Canada Relative to Foreign

question 10

Multiple Choice

If the price level increases in Canada relative to foreign countries, then Canadian consumers will purchase more foreign goods and fewer Canadian goods.This statement describes:

• A)the output effect.
• B)the foreign trade effect.
• C)the real-balances effect.
• D)the shift-of-spending effect.

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Definitions:

Crowding

A situation characterized by a high density of people in a given space, which can lead to psychological distress or social tension.

Hardy

Refers to an individual's durability or resilience under stress or adversity, often discussed in psychological contexts.

Stressors

Events, situations, or stimuli that cause stress, challenging an individual's ability to cope.

Optimist

An individual who tends to maintain a positive outlook and focus on the hopeful aspects of any situation, expecting favorable outcomes.