If Canada spends more on foreign produced goods and services than foreigners spend on Canadian produced goods and services, which of the following situations will arise?

Question

Answer

Canada must borrow an amount equal to imports minus exports.

Answer

Canada must lend an amount equal to imports minus exports.

Answer

Canada must borrow an amount equal to consumption expenditure plus investment.

Answer

The rest of the world may or may not finance Canada's trade deficit.

Answer

Canada must borrow an amount equal to national saving.

Crowdly

If Canada spends more on foreign produced goods and services than foreigners spe...

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