An Increase in Federal Government Budget Deficits That Raises Canadian

question 162

Multiple Choice

An increase in federal government budget deficits that raises Canadian interest rates relative to the rest of the world should

• A)raise the trade balance.
• B)increase net exports.
• C)cause the dollar to depreciate.
• D)lead to a current account deficit.
• E)decrease foreign portfolio investment.

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Definitions:

Station

A designated area or place intended for a particular use, often referring to a transportation hub or broadcasting facility.

Tradition

Customary patterns of thought, action, or behavior that are handed down within a culture or group over generations.

Republic

A form of government in which the country is considered a "public matter" and the head of state is an elected or nominated president, not a monarch.

European Union

A political and economic union of 27 European countries that are located primarily in Europe, aiming to ensure the free movement of people, goods, services, and capital.