Suppose a Video Craze in Canada Makes a Particular Japanese-Produced

question 86

Multiple Choice

Suppose a video craze in Canada makes a particular Japanese-produced video game very popular.What effect would this have?

• A)It would tend to affect the Canadian balance of payments but not the balance of trade.
• B)It would tend to increase the balance of trade deficit of Canada.
• C)It would tend to increase the balance of trade surplus of Canada.
• D)It would tend to reduce any existing balance of trade deficit in Canada.