Multiple Choice
Which of the following best predicts the effects of a fall in the Canadian real interest rate?
A) Owning Canadian assets becomes less attractive, and net capital outflow rises.
B) Owning Canadian assets becomes less attractive, and net capital outflow falls.
C) Owning Canadian assets becomes more attractive, and net capital outflow rises.
D) Owning Canadian assets becomes more attractive, and net capital outflow falls.
Correct Answer:
Verified
Correct Answer:
Verified
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