Multiple Choice
Which statement best predicts the effects of an increase in the Canadian real interest rate?
A) Canadian net capital outflow and net capital outflow of other countries would rise.
B) Canadian net capital outflow and net capital outflow of other countries would fall.
C) Canadian net capital outflow would rise, while net capital outflow of other countries would fall.
D) Canadian net capital outflow would fall, while net capital outflow of other countries would rise.
Correct Answer:
Verified
Correct Answer:
Verified
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