If Inflation in Canada Is Higher Than Inflation in Other

question 93

Multiple Choice

If inflation in Canada is higher than inflation in other countries, what will be the effect on net exports for Canada?

• A)Net exports will rise as Canadian exports increase.
• B)Net exports will rise as Canadian imports decrease.
• C)Net exports will decrease as Canadian exports decrease.
• D)Net exports will decrease as Canadian imports increase.

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Definitions:

Work in Process

Goods in various stages of completion throughout the production process, not yet ready for sale.

Finished Goods

Items that are finished with production and available for purchase by consumers.

Work in Process

Work in process (WIP) refers to partially finished goods that are still undergoing manufacturing processes but are not yet complete products.

Materials Purchased

The total cost of raw materials bought by a company for the purpose of production in a given period.