What Would Happen to Canadian Net Exports and Aggregate Demand

question 231

Multiple Choice

What 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:

Budgeted Accounts Receivable

The projected amount of money owed to a company by its customers for goods or services delivered or used but not yet paid for.

Collections

Refers to the process or activity of gathering or receiving payments from customers, typically relating to accounts receivable.

Cash Budget

A budget that estimates cash inflows and outflows over a specific period, used to assess whether a company has sufficient cash to meet its obligations.

Budgeted Required Production

The quantity of product that a company plans to manufacture in a specific period, determined based on sales forecasts and inventory targets.