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:

Reality Principle

The recognition, characterizing ego functioning, that we cannot always express or satisfy our id impulses.

Psychodynamic

A method in psychology that prioritizes the thorough investigation of the mental processes driving human behavior, emotions, and feelings, and their association with experiences from early life.

Freud's

Pertaining to Sigmund Freud, the father of psychoanalysis, including his theories and methodologies.

Adler's

Pertaining to Alfred Adler's theories, focusing on the importance of feelings of inferiority and the drive for superiority in the development of personality.