Which Statement Best Predicts the Effects of a Fall in the Canadian

question 26

Multiple Choice

Which statement best predicts the effects of a fall in the Canadian real interest rate?

• A) Owning Canadian assets becomes less attractive, and net capital outflow rises.
• B) Owning Canadian assets becomes less attractive, and net capital outflow falls.
• C) Owning Canadian assets becomes more attractive, and net capital outflow rises.
• D) Owning Canadian assets becomes more attractive, and net capital outflow falls.