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Largest trading partner of canada

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Reference no: EM132600942

1. What effects would each of the following have on aggregate demand or aggregate supply (other things held constant)? Explain them to score high marks.

a. The Canadian dollar loses its value and gets weaker by 3% against the US dollar.

b. A $2 increase in the excise tax (production) on a pack of cigarettes.

c. A reduction in interest rates at each price level.

d. COVID-19 reduces the demand for oil and thus oil prices fall sharply in the international market.

e. The US economy, the largest trading partner of Canada, goes into recession due to COVID -19.

Reference no: EM132600942

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