If a Foreign Trading Partner of Canada Increases Its Budget

question 25

Multiple Choice

If a foreign trading partner of Canada increases its budget deficit,raising interest rates in that country,what will the effect on Canadian exports and AD be?

• A)Canadian exports will increase but AD will be unchanged.
• B)Canadian exports and AD will both tend to rise.
• C)Canadian exports and AD will both tend to fall.
• D)There will be an indeterminate effect on Canadian exports and AD.

---

Definitions:

Cerebral Cortex

The outer layer of the brain's cerebrum, involved in complex brain functions like thinking, decision-making, and language.

Corpus Callosum

The thick bundle of nerve fibers that connects the hemispheres of the brain.

Myelination

The process of forming a myelin sheath around the nerves in the brain and spinal cord, which improves the speed and efficiency of electrical signal transmission.

Auditory Information

Information that is received and processed through the sense of hearing.