Assuming a Fixed Exchange Rate System,which of the Following Would

question 103

Multiple Choice

Assuming a fixed exchange rate system,which of the following would contribute to a Canadian balance of payments surplus?

• A)The USA increases the tariff on Canadian softwood lumber.
• B)The popularity of Mexican tequila in Canada increases dramatically.
• C)Canada increases its investment in Mexican oil fields.
• D)Canada increases the number of military personal stationed abroad.
• E)The number of Japanese tourists visiting Canada increases greatly.

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