Which of the Following Could Be Prompted by an Interest

question 129

Multiple Choice

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

• A)A Swiss bank purchases a Canadian bond instead of the German bond it had considered purchasing.
• B)Canadian firms decide, since interest rates are higher, to do more investment spending.
• C)Brad, a Canadian resident, decides to put less money in his savings account than he had planned to.
• D)Canadian net capital outflow increases.

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