The foreign-trade effect says that as the Canadian price level rises relative to other countries,
multiple choice:
Canadians will buy more abroad, and foreigners will decrease their buying of Canadian exports.
Canadians will buy less abroad, and foreigners will decrease their buying of Canadian exports.
Canadians will buy more abroad, and foreigners will increase their buying of Canadian exports.
Canadians will buy less abroad, and foreigners will increase their buying of Canadian exports.