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.

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Definitions:

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A sample that ensures each member of the population has an equal chance of being included.

Probability

A quantification of the probability that a specific event happens, denoted by a value ranging from 0 to 1.

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An individual responsible for ensuring that the project's outputs, processes, and systems meet the required quality standards.