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Which Statement Best Predicts the Effects of a Fall in the Canadian

Question 26

Multiple Choice

Which statement 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.

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