Net exports usually ________ when the Canadian economy is in a recession and ________ when the Canadian economy is expanding, all else equal.
A)increase; increase
B)decrease; increase
C)increase; decrease
D)decrease; decrease

Question

Quizplus · Accepted Answer

During a recession, domestic demand for imports typically decreases, and foreign demand for Canadian exports may remain stable or increase, leading to higher net exports. Conversely, during economic expansion, increased domestic demand for imports can lead to a decrease in net exports.

Net Exports Usually ________ When the Canadian Economy Is in a Recession