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    Macroeconomics Study Set 8
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    Exam 10: Exchange Rates, business Cycles, and Macroeconomic Policy
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    The Canadian Real Interest Rate Rises Relative to the British
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The Canadian Real Interest Rate Rises Relative to the British

Question 21

Question 21

Multiple Choice

The Canadian real interest rate rises relative to the British real interest rate.British net exports ________ and the British exchange rate ________.


A) increase;rises
B) increase;falls
C) decrease;rises
D) decrease;falls

Correct Answer:

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