What Does the Foreign-Trade Effect Suggest Will Happen If There

Multiple Choice

What does the foreign-trade effect suggest will happen if there is a decrease in the Canadian price level relative to other countries?

A) It will increase the volume of both Canadian exports and imports.
B) It will decrease the volume of both Canadian exports and imports.
C) It will increase the volume of Canadian exports but decrease the volume of imports.
D) It will decrease the volume of Canadian exports but increase the volume of imports.