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    Principles of Macroeconomics
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    Exam 13: A Macroeconomic Theory of the Small Open Economy
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    If the World Real Interest Rate Was Lower Than the Interest
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If the World Real Interest Rate Was Lower Than the Interest

Question 64

Question 64

Multiple Choice

If the world real interest rate was lower than the interest rate that would occur if the Canadian economy were closed, then what would the Canadian net capital outflow be?


A) positive
B) negative
C) decreasing
D) increasing

Correct Answer:

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