In 2007-2008, Exports from Canada to the United States Fell

question 101

Multiple Choice

In 2007-2008, exports from Canada to the United States fell dramatically.Based on the multiplier effect, we would expect

• A)the economy to shrink by less than the drop in exports.
• B)the economy to grow by less than the drop in exports.
• C)the economy to grow by more than the drop in exports.
• D)the economy to shrink by more than the drop in exports.
• E)the economy to be unaffected due to a corresponding drop in imports.

---

Definitions:

Traditional Views

Conventional or long-standing beliefs or opinions, often based on historical practices or societal norms.

Goleman

Daniel Goleman, an author, psychologist, and science journalist known for his work on emotional intelligence.

Insight

The capacity to gain an accurate and deep understanding of a person or thing, often leading to a sudden discovery or realization.

Mental Set

The tendency for people to persist in using problem-solving patterns that have worked for them in the past.