Which of the Following Would Happen to Canadian Net Exports

question 86

Multiple Choice

Which of the following would happen to Canadian net exports and aggregate demand if countries that imported from Canada went into recession?

• A)Net exports would rise, and aggregate demand would shift right.
• B)Net exports would rise, and aggregate demand would shift left.
• C)Net exports would fall, and aggregate demand would shift right.
• D)Net exports would fall, and aggregate demand would shift left.

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Definitions:

Comparison Universe

A benchmark or group of benchmarks used to evaluate the performance of an investment or fund.

Mutual Funds

Investment vehicles that pool money from multiple investors to buy a diversified portfolio of stocks, bonds, or other securities.

Jensen's Measure

A performance metric that evaluates the excess return of an investment portfolio over the predicted return by the Capital Asset Pricing Model (CAPM), adjusted for market risk.

Market Portfolio

A hypothetical collection of all market assets, each proportioned by its market value.