Suppose That the Real Return from Operating Factories in Canada

Multiple Choice

Suppose that the real return from operating factories in Canada rises relative to the real rate of return in the United States.Other things the same,

A) this will increases U.S.net capital outflow and decrease Canadian net capital outflow.
B) this will decreases U.S.net capital outflow and increase Canadian net capital outflow.
C) this will only increase U.S.net capital outflow.
D) this will only increase Canadian net capital outflow.