Multiple Choice
Which of the following best describes the effects of an increase in real interest rates in Canada?
A) It discourages both Canadian and foreign residents from buying Canadian assets.
B) It encourages both Canadian and foreign residents to buy Canadian assets.
C) It encourages Canadian residents to buy Canadian assets, but discourages foreign residents from buying Canadian assets.
D) It encourages foreign residents to buy Canadian assets, but discourages Canadian residents from buying Canadian assets.
Correct Answer:

Verified
Correct Answer:
Verified
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