Assume the Canadian Demand Elasticity for Imports Equals 1

question 57

Multiple Choice

Assume the Canadian demand elasticity for imports equals 1.2, while the foreign demand elasticity for Canadian exports equals 1.8.Responding to a trade deficit, suppose the Canadian dollar depreciates by 10 percent.Other things equal, for Canada, the depreciation would lead to

• A) a worsening trade balance-a larger deficit.
• B) an improving trade balance-a smaller deficit.
• C) an unchanged trade balance.
• D) None of these are correct.

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Definitions:

Airway Obstruction

A blockage in any part of the airway that impedes normal breathing, potentially life-threatening if not promptly treated.

Growth And Development

The process of physical, cognitive, and socioemotional changes that humans undergo from birth through old age.

Infants

Very young children, typically those under one year of age.

Chronic Obstructive Pulmonary Disease (COPD)

A group of progressive lung diseases causing airflow blockage and breathing-related problems.