Which Statement Could Be Prompted by an Interest Rate That

question 27

Multiple Choice

Which statement could be prompted by an interest rate that is temporarily higher in Canada than in the rest of the world?

• A) A Bahamian bank purchases a Canadian bond instead of the British bond it had considered purchasing.
• B) Canadian firms decide, because interest rates are higher, to do more investment spending.
• C) Cole, a Canadian resident, decides to spend his savings on a trip to Hawaii.
• D) Canadian net capital outflow increases.

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Definitions:

Innate Fear

A preprogrammed anxiety or terror response to certain stimuli, not learned through personal experience.

Hatred

Intense dislike or ill will against a person, group, or concept.

Biological Disposition

Natural predispositions or tendencies inherent in individuals, often due to genetic or physiological factors.

Homophobia

An aversion or hostility towards homosexual people, often manifesting in discriminatory or prejudicial attitudes and behaviors.