The price elasticity of demand for Canadian imports is 1.2, and the price elasticity of demand for Canadian exports is 1.8. What is the net effect on Canadian outpayments (outflows) when the Canadian dollar depreciates by 10%? (It would be a good idea to save the answer, you may need it later) Effect of 10% Canadian Dollar Depreciation on Canada'sTrade Balance Change in Change in Change in Sector C$ price US$ price Quantity Net Effect (E) Elasticity Import 1.2 Export 1.8 Outpayments fall by 12% Outpayments fall by 18% O Outpayments rise by 12% O Outpayments rise by 18% O Outpayments fall by 2%