If Canadian Citizens Decide to Save a Larger Fraction of Their

Multiple Choice

If Canadian citizens decide to save a larger fraction of their incomes, which statement would best identify the effects?

A) The real interest rate decreases, the real exchange rate of the dollar depreciates, and Canadian net capital outflow increases.
B) The real interest rate decreases, the real exchange rate of the dollar appreciates, and Canadian net capital outflow decreases.
C) The real interest rate increases, the real exchange rate of the dollar appreciates, and Canadian net capital outflow decreases.
D) The real interest rate increases, the real exchange rate of the dollar depreciates, and Canadian net capital outflow increases.