If the World Real Interest Rate Exceeds the Canadian Real

Multiple Choice

If the world real interest rate exceeds the Canadian real interest rate, what would Canadian savers most likely do?

A) Canadian savers would prefer to buy foreign assets.
B) Canadian savers would prefer to buy Canadian assets.
C) Canadian savers will prefer to wait until the two real interest rates are again equal.
D) Canadian savers will sell their foreign assets and buy Canadian assets instead.