Which Statement Best Describes the Effects of an Increase in Real

question 137

Multiple Choice

Which statement best describes the effects of an increase in real interest rates in Canada?

• A) It discourages both Canadian and foreign residents from buying Canadian assets.
• B) It encourages both Canadian and foreign residents to buy Canadian assets.
• C) It encourages Canadian residents to buy Canadian assets, but discourages foreign residents from buying Canadian assets.
• D) It encourages foreign residents to buy Canadian assets, but discourages Canadian residents from buying Canadian assets.