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We Can Expect That an Increase in Canadian Interest Rates

Question 136

Multiple Choice

We can expect that an increase in Canadian interest rates caused by a monetary contraction would


A) decrease the external value of the Canadian dollar.
B) stimulate Canadian exports.
C) increase the external value of the Canadian dollar.
D) always induce an offsetting action by the Bank of Canada.
E) lead to a surplus in Canada's current account.

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