Michel, a Canadian Citizen Living in Canada, Buys $300 of Cheese

Multiple Choice

Michel, a Canadian citizen living in Canada, buys $300 of cheese from France. Which statement best identifies the effects of this transaction?

A) It increases Canadian imports by $300 and increases Canadian net exports by $300.
B) It increases Canadian imports by $300 and decreases Canadian net exports by $300.
C) It increases Canadian exports by $300 and increases Canadian net exports by $300.
D) It increases Canadian exports by $300 and decreases Canadian net exports by $300.