Suppose That from 1980 to 1987, Canadian Net Capital Outflows

question 7

Multiple Choice

Suppose that from 1980 to 1987, Canadian net capital outflows decreased. According to the open-economy macroeconomic model, which of the following could have caused this?

• A)an increase in the demand for Canadian currency in the foreign-currency exchange
• B)a decrease in the demand for Canadian currency in the foreign-currency exchange
• C)an increase in the supply of loanable funds
• D)a decrease in the supply of loanable funds

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