Figure 5.4 Suppose the World Consists of Two Large Open Economies, Canada

question 29

Multiple Choice

Figure 5.4

Suppose the world consists of two large open economies, Canada and the rest of the world. The figures above represent loanable funds graphs for these two economies.
-Refer to Figure 5.4.At an interest rate of 7%,

• A) foreign borrowers have an incentive to offer lenders in Canada an interest rate greater than 7%.
• B) foreign lenders have an incentive to offer borrowers in Canada an interest rate less than 7%.
• C) Canadian lenders have an incentive to offer borrowers in the rest of the world an interest rate of 7%.
• D) Canadian borrowers have an incentive to offer Canadian lenders an interest rate greater than 7%.

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Definitions:

Interpersonal Conflict

A situation where there is a disagreement or clash between individuals due to differing viewpoints, interests, or goals.

Interactive Approach

A method or practice that emphasizes two-way communication and active engagement between parties involved.

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The ability to convey or exchange information effectively through various means, including verbal, non-verbal, written, and visual.

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A surgical procedure to remove the tonsils, which are two lymphoid tissues located at the back of the throat, often performed to treat chronic tonsillitis or obstructive sleep apnea.