Suppose That the Real Return from Operating Factories in Canada

question 8

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.