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    Exam 13: A Macroeconomic Theory of the Open Economy
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    If the World Real Interest Rate Exceeds the Interest Rate
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If the World Real Interest Rate Exceeds the Interest Rate

Question 56

Question 56

Multiple Choice

If the world real interest rate exceeds the interest rate that would occur if the Canadian economy were closed, then the Canadian net capital outflow will be which of the following?


A) positive
B) negative
C) decreasing
D) increasing

Correct Answer:

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