Canadian Net Export Spending Rises When

question 105

Multiple Choice

Canadian net export spending rises when

• A)the price level in Canada rises relative to the price level in other countries.
• B)the growth rate of Canadian GDP is faster than the growth rate of GDP in other countries.
• C)the value of the Canadian dollar increases relative to other currencies.
• D)the inflation rate is higher in Canada relative to other countries.
• E)the Canadian economy become more open to international trade.

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Definitions:

Preferred Stock

A class of ownership in a corporation with a specified dividend that is paid before any dividends are paid to common stock holders and typically with no voting rights.

Common Stock

Type of security that signifies ownership in a corporation and represents a claim on part of the company's profits and assets.

Dividends

Disbursements issued by a company to its shareholders, representing a share of the company's earnings distributed to its stockholders.

Cash Dividend

A cash dividend refers to the distribution of a portion of a company's profits to its shareholders as cash.