Multiple Choice
Mexico suffered from capital flight in 1994. Which statement best describes the effects of this event on the Canadian economy?
A) The Canadian real interest rate rose, and the real exchange rate of the dollar appreciated.
B) The Canadian real interest rate rose, and the real exchange rate of the dollar depreciated.
C) The Canadian real interest rate fell, and the real exchange rate of the dollar appreciated.
D) The Canadian real interest rate fell, and the real exchange rate of the dollar depreciated.
Correct Answer:
Verified
Correct Answer:
Verified
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