Which of the Following Is the Effect of an Increase

question 37

Multiple Choice

Which of the following is the effect of an increase in the Canadian real interest rate above the world interest rate?

• A)Canadians buy more foreign assets, which increases Canadian net capital outflow.
• B)Canadians buy more foreign assets, which reduces Canadian net capital outflow.
• C)Foreigners buy more Canadian assets, which reduces Canadian net capital outflow.
• D)Foreigners buy more Canadian assets, which increases Canadian net capital outflow.

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Definitions:

Mirror-Image Rule

A principle in contract law stating that an offer must be accepted exactly without modifications for a valid contract to be formed.

Industry-Specific

Refers to products, services, or standards that are specific to a particular industry or sector.

Restatement of Contracts

A comprehensive compilation of legal principles regarding contract law intended to clarify, modernize, and illustrate current legal practices.

Silence

The absence of any response or acknowledgment, which in some legal contexts can signify agreement or acquiescence.