Which of the Following Would Be Consistent with an Increase

question 162

Multiple Choice

Which of the following would be consistent with an increase in the Canadian real interest rate?

• 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 exports increase.

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Definitions:

Arrow Impossibility Theorem

A theorem stating that no rank-order voting system can be designed that always satisfies three fairness criteria: non-dictatorship, Pareto efficiency, and independence of irrelevant alternatives.

Pairwise Majority Voting

A voting system in which decisions are made by comparing the preferences of the majority for each pair of options in turn.

Symbolism

A late-19th-century movement based on the idea that the artist was not an imitator of nature but a creator who transformed the facts of nature into a symbol of the inner experience of that fact.

Gustave Moreau

A French Symbolist painter known for his mystical and elaborate works, blending classical subjects with Byzantine and medieval influences.