The USAnd Canada Heavily Trade with Each Other

question 39

Multiple Choice

The U.S.and Canada heavily trade with each other.Which of the following is TRUE?

• A)Canadian prices increase ⇒ Canadian exports increase ⇒ U.S.prices decrease.
• B)Canadian prices increase ⇒ Canadian exports decrease ⇒ U.S.prices increase.
• C)Canadian prices decrease ⇒ Canadian exports decrease ⇒ U.S.prices decrease.
• D)Canadian prices decrease ⇒ Canadian exports decrease ⇒ U.S.prices increase.

---

Definitions:

Deduction Limit

Maximum amount that can be deducted from taxable income for certain expenses or contributions, as specified by tax laws.

Itemized Deduction

Itemized deductions are specific expenses allowed by the IRS that can be deducted from taxable income to reduce the amount of tax owed.

Moving Expenses

Costs incurred for relocating, which in certain situations, may be deductible for tax purposes.

Above-the-line Deduction

A deduction from gross income that can be taken without itemizing deductions, reducing adjusted gross income, and available to all taxpayers who qualify.