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    Macroeconomics Study Set 9
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    Exam 11: The Is-Mp Model: Adding Inflation and the Open Economy
  5. Question
    If the Real Interest Rate in Canada Decreases,foreign Investors Will
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If the Real Interest Rate in Canada Decreases,foreign Investors Will

Question 20

Question 20

Multiple Choice

If the real interest rate in Canada decreases,foreign investors will ________ their demand for Canadian dollars because they desire to ________ fewer Canadian financial assets.


A) increase; buy
B) increase; sell
C) decrease; buy
D) decrease; sell

Correct Answer:

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