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If Interest Rates in Canada Increase Relative to the Rest

Question 32

Multiple Choice

If interest rates in Canada increase relative to the rest of the world,it means that (1) Canadian bonds will provide a ________ return than previously and (2) ________ for these bonds will ________.


A) higher; supply; decrease
B) higher; supply; increase
C) higher; demand; increase
D) lower; demand; decrease
E) lower; demand; increase

Correct Answer:

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