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In 2007-2008, Exports from Canada to the United States Fell

Question 101

Multiple Choice

In 2007-2008, exports from Canada to the United States fell dramatically.Based on the multiplier effect, we would expect


A) the economy to shrink by less than the drop in exports.
B) the economy to grow by less than the drop in exports.
C) the economy to grow by more than the drop in exports.
D) the economy to shrink by more than the drop in exports.
E) the economy to be unaffected due to a corresponding drop in imports.

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