If Interest Rates in Canada Fall Below Those in the Rest

Multiple Choice

If interest rates in Canada fall below those in the rest of the world, then

A) it depreciates Canada's exchange rate and this may result in a surplus on Canada's current account
B) the demand for Canadian dollars increases
C) exports from Canada to other countries decrease
D) it raises Canada's exchange rate and this may result in a deficit on Canada's current account
E) the balance of payments becomes negative