Suppose That the Rest of the World Experiences a Recession

Multiple Choice

Suppose that the rest of the world experiences a recession causing a decrease in foreign output. This decrease in foreign output will not cause which of the following to occur?

A) The domestic country's consumption to decrease.
B) The domestic country's imports to decrease.
C) The domestic country's trade balance to improve.
D) The domestic country's output to decrease.
E) The domestic country's trade balance to worsen.