If Canada imposes an import quota on kayaks, which statement would best predict the consequences according to the open economy model that ties net capital outflow to the supply of Canadian dollars in the foreign exchange rate market?

Select one:

Canadian exports increase, imports increase, and net exports are unchanged.

Canadian exports decrease, imports increase, and net exports decrease.

Canadian exports decrease, imports decrease, and net exports are unchanged.

Canadian exports increase, imports decrease, and net exports increase.