Multiple Choice
When Mexico suffered from capital flight in 1994,which of the following 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
Q12: Suppose the market for loanable funds is
Q17: Suppose that Canada imposes an import quota
Q18: In an open economy,which of the following
Q19: What does the identity "net capital outflow
Q29: Suppose that Canadian citizens start saving more.
Q31: Suppose that Chile has a budget surplus,
Q33: Suppose that Canada places higher tariffs on
Q62: If a government increases its budget deficit,
Q91: If Canadian citizens decide to save a
Q188: According to the open-economy macroeconomic model, if