aggregate demand in canada increases if\na. china buys more canadian oil.\nb. aggregate demand in india…

aggregate demand in canada increases if\na. china buys more canadian oil.\nb. aggregate demand in india decreases.\nc. canada buys more porsches from germany.\nd. the value of the canadian dollars rises.\ne. all of the above.

aggregate demand in canada increases if\na. china buys more canadian oil.\nb. aggregate demand in india decreases.\nc. canada buys more porsches from germany.\nd. the value of the canadian dollars rises.\ne. all of the above.

Answer

Brief Explanations:

Aggregate demand is the total demand for final goods and services in an economy. When China buys more Canadian oil, it represents an increase in exports for Canada. Exports are a component of aggregate - demand (AD = C + I+ G+ X - M), and an increase in exports leads to an increase in aggregate demand. A decrease in aggregate demand in India has no direct impact on Canada's aggregate demand. When Canada buys more Porsches from Germany, imports increase, which will decrease Canada's aggregate demand (as imports are subtracted in the AD formula). When the value of the Canadian dollar rises, Canadian exports become more expensive and imports become cheaper, leading to a decrease in net - exports and thus a decrease in aggregate demand.

Answer:

A. China buys more Canadian oil.