Multiple Choice
Which of the following could be prompted by an interest rate that is temporarily higher in Canada than in the rest of the world?
A) A Swiss bank purchases a Canadian bond instead of the German bond it had considered purchasing.
B) Canadian firms decide, since interest rates are higher, to do more investment spending.
C) Brad, a Canadian resident, decides to put less money in his savings account than he had planned to.
D) Canadian net capital outflow increases.
Correct Answer:
Verified
Correct Answer:
Verified
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