What Impact Does an Increase in the Price Level in Canada

question 229

Multiple Choice

What impact does an increase in the price level in Canada have on net exports and why?

• A)An increase in the price level decreases net exports because higher prices decrease the value of the dollar.
• B)An increase in the price level decreases net exports by increasing the relative cost of Canadian goods.
• C)An increase in the price level increases net exports because higher prices lower the value of the dollar.
• D)An increase in the price level increases net exports because higher prices decrease Canadian spending on imports.
• E)An increase in the price level decreases net exports by reducing Canadian's nominal income.

---

Definitions:

Disparate Impact

A phenomenon where a policy or practice appears neutral but disproportionately affects individuals of a certain group, often used in discussions of employment discrimination.

Four-Fifths Rule

A guideline used in the United States to assess discrimination in employment practices, indicating potential bias if a selection rate for any race, sex, or ethnic group is less than four-fifths (80%) of the rate for the group with the highest selection rate.

Discriminatory Content

Material or expressions that unfairly differentiate or prejudice against individuals or groups based on characteristics such as race, gender, age, or religion.

Valuing Diversity

Recognizing, respecting, and leveraging differences in the workforce, such as cultural backgrounds, perspectives, and skills, to foster an inclusive and productive environment.