Suppose the Canadian price level decreases.What happens to the aggregate quantity of Canadian output demanded?
A) It decreases because Canadian products become cheaper relative to foreign products.
B) It decreases because Canadian products become more expensive relative to foreign products.
C) It increases because Canadian products become cheaper relative to foreign products.
D) It increases because Canadian products become more expensive relative to foreign products.

Question

Suppose the Canadian price level decreases.What happens to the aggregate quantity of Canadian output demanded?  
A) It decreases because Canadian products become cheaper relative to foreign products. 
B) It decreases because Canadian products become more expensive relative to foreign products. 
C) It increases because Canadian products become cheaper relative to foreign products. 
D) It increases because Canadian products become more expensive relative to foreign products.

Quizplus · Accepted Answer

C) It increases because Canadian products become cheaper relative to foreign products, making them more attractive to both domestic and international buyers, thus increasing the demand for Canadian output.

Suppose the Canadian Price Level Decreases