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.

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Definitions:

Probability of Success

The likelihood or chance of an event happening or a goal being achieved.

Costs

The expenses incurred in the production of goods or services, or in the operation of a company.

Firm Choose

The decision-making process by which a company selects among available options in strategy, operations, or other aspects of its business.

Complicated Technology

Complicated technology involves systems or devices that are complex in design, functionality, or operation, requiring specialized knowledge or skills to use or maintain.