During the Depression, which international factor reduced demand for Canadian exports?

• A. US embargo on Canadian products
• B. Global gold standard stabilized trade
• C. Canada exported more than ever due to new markets
• D. European countries stopped importing Canadian wheat and goods due to wartime debts.

Answer: (D)

The key idea is how international demand for Canadian goods fell during the Depression. Canada depended on selling exports like wheat to other countries, especially in Europe. When European nations were crippled by wartime debts and the global downturn, they cut back on imports, which meant a big drop in demand for Canadian products. That international pullback directly reduced Canada's export activity.

This is why the statement about European countries stopping imports due to wartime debts best explains the international factor lowering demand for Canadian exports. The other ideas don’t fit: there wasn’t a formal U.S. embargo on Canadian products, and tariffs rose in the United States rather than an outright embargo; the gold standard did not stabilize trade—many countries abandoned it during the early 1930s, making trade more volatile; and the notion that Canada exported more due to new markets runs counter to the Depression’s widespread collapse in trade.