If Canadian Citizens Decide to Save a Larger Fraction of Their

question 193

Multiple Choice

If Canadian citizens decide to save a larger fraction of their incomes, which statement would best identify the effects?

• A) The real interest rate decreases, the real exchange rate of the dollar depreciates, and Canadian net capital outflow increases.
• B) The real interest rate decreases, the real exchange rate of the dollar appreciates, and Canadian net capital outflow decreases.
• C) The real interest rate increases, the real exchange rate of the dollar appreciates, and Canadian net capital outflow decreases.
• D) The real interest rate increases, the real exchange rate of the dollar depreciates, and Canadian net capital outflow increases.

---

Definitions:

Sensory Adaptation

The process by which sensory receptors become less sensitive to constant stimuli, allowing organisms to focus on changes in their environment.

Skin Senses

The sensory modalities including touch, temperature, pain, and proprioception that inform an individual about the external environment via the skin.

Expectations

Beliefs or anticipations about the way events, behaviors, or outcomes should happen, often influencing perceptions and behaviors.

Papillae

Small, nipple-like projections on the tongue where taste buds are located, involved in the sense of taste.