Suppose Canada Spends More on Foreign Goods and Services Than

Multiple Choice

Suppose Canada spends more on foreign goods and services than foreigners spend on our goods and services.Then

A) Canada must borrow an amount equal to imports minus exports.
B) the rest of the world may or may not finance Canada's trade deficit.
C) the Bank of Canada will raise the foreign exchange rate of the Canadian dollar.
D) Canada must borrow an amount equal to consumption expenditure plus investment.
E) Canada must borrow an amount equal to national saving.