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Suppose That from 1980 to 1987, Canadian Net Capital Outflows

Question 7

Multiple Choice

Suppose that from 1980 to 1987, Canadian net capital outflows decreased. According to the open-economy macroeconomic model, which of the following could have caused this?


A) an increase in the demand for Canadian currency in the foreign-currency exchange
B) a decrease in the demand for Canadian currency in the foreign-currency exchange
C) an increase in the supply of loanable funds
D) a decrease in the supply of loanable funds

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