What impact will an increase in the Canadian price level have?
A)It will decrease money demand in Canada.
B)It will increase real GDP demanded in Canada.
C)It will increase Canadian exports.
D)It will increase Canadian imports.

Question

Quizplus · Accepted Answer

When the Canadian price level increases, Canadian goods and services become relatively more expensive compared to foreign goods and services. This leads to an increase in Canadian imports as consumers switch to cheaper foreign goods.

What Impact Will an Increase in the Canadian Price Level