Which of the Following Best Predicts the Effects of a Fall

question 183

Multiple Choice

Which of the following best predicts the effects of a fall in the Canadian real interest rate?

• A)Owning Canadian assets becomes less attractive, and net capital outflow rises.
• B)Owning Canadian assets becomes less attractive, and net capital outflow falls.
• C)Owning Canadian assets becomes more attractive, and net capital outflow rises.
• D)Owning Canadian assets becomes more attractive, and net capital outflow falls.