Consider Canada's Terms of Trade

Multiple Choice

Consider Canada's terms of trade.Canada is a net exporter of oil.An increase in the world price of oil,ceteris paribus,means that Canada's terms of trade will

A) deteriorate.
B) improve.
C) not change.
D) improve as long as all of Canada's production of oil is being exported.
E) deteriorate as long as Canada exports more oil than it imports.