If Inflation in Canada Is Lower Than Inflation in Other

question 221

Multiple Choice

If inflation in Canada is lower 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 increase.
• C)Net exports will decrease as Canadian exports decrease.
• D)Net exports will decrease as Canadian imports decrease.
• E)Net exports will remain unchanged.

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Definitions:

Mersel-Kébir

A naval engagement off the coast of Algeria in 1940, where the British Royal Navy attacked French Navy ships to prevent them from potentially falling into German hands during World War II.

Neville Chamberlain

Neville Chamberlain was a British prime minister best known for his policy of "appeasement" toward Adolf Hitler's Germany in the lead-up to World War II.

Prime Minister

The Prime Minister is the head of government in a parliamentary system, responsible for running the state's administration and implementing executive decisions.