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It May Be Misleading to Label a Trade Deficit as "Unfavourable

Question 15

Multiple Choice

It may be misleading to label a trade deficit as "unfavourable" or "adverse" because:


A) the multiplier does not apply to a trade deficit.
B) it increases our aggregate output and employment.
C) Canadian consumers benefit from a trade deficit during the period it occurs.
D) all of the above reasons.

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