Which of the Following Is the Effect of an Increase

question 3

Multiple Choice

Which of the following is the effect of an increase in the Canadian real interest rate?

• A)Canadians buy more foreign assets, which increases Canadian net capital outflow.
• B)Canadians buy more foreign assets, which reduces Canadian net capital outflow.
• C)Foreigners buy more Canadian assets, which reduces Canadian net capital outflow.
• D)Foreigners buy more Canadian assets, which increases Canadian net capital outflow.

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Definitions:

Mammoth

A large, extinct species of hairy prehistoric elephant, often associated with the Pleistocene epoch.

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Large, elegant white birds often found near water, known for their slender necks and long legs.

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Repeated designs or sequences observed in objects, events, or behaviors.

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A diagram that shows the relative locations of genes or DNA sequences on a chromosome, used for identifying gene function and heredity patterns.