Mike, a Canadian Citizen Living in Canada, Buys $30 of Cheese

Multiple Choice

Mike, a Canadian citizen living in Canada, buys $30 of cheese from France. Which of the following correctly identifies the effects of this transaction?

A) It increases Canadian imports by $30 and increases Canadian net exports by $30.
B) It increases Canadian imports by $30 and decreases Canadian net exports by $30.
C) It increases Canadian exports by $30 and increases Canadian net exports by $30.
D) It increases Canadian exports by $30 and decreases Canadian net exports by $30.