Suppose the Canadian Price Level Rises Relative to Price Levels

question 21

Multiple Choice

Suppose the Canadian price level rises relative to price levels in other countries.How would Canada's consumption and exports be affected?  

• A) Consumption and net exports would decline. 
• B) Consumption and net exports would increase. 
• C) Consumption would increase and net exports would decrease. 
• D) Consumption would decrease and net exports would increase.

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Definitions:

Proposition 13

A landmark 1978 California ballot initiative that reduced property tax rates on homes, businesses, and farms by assessing property values at their 1975 value.

Property Taxes

Taxes on the value of real estate property, typically levied by local governments.

Californians

generally refers to the residents or people who are from California, a state located on the west coast of the United States.

Ted Kennedy

An American politician and a prominent member of the Kennedy family who served as a United States Senator from Massachusetts for over four decades.