Suppose the Bank of Canada Raises Its Target for the Overnight

question 40

Multiple Choice

Suppose the Bank of Canada raises its target for the overnight interest rate from 3% to 3.25%,while interest rates in other countries do not change.The result will be

• A)an inflow of financial capital,a decrease in demand for Canadian dollars,and a depreciation of the Canadian dollar.
• B)an inflow of financial capital,an increase in demand for Canadian dollars,and a depreciation of the Canadian dollar.
• C)an inflow of financial capital,an increase in demand for Canadian dollars,and an appreciation of the Canadian dollar.
• D)an outflow of financial capital,an increase in demand for Canadian dollars,and an appreciation of the Canadian dollar.
• E)an outflow of financial capital,a decrease in demand for Canadian dollars,and a depreciation of the Canadian dollar.

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Definitions:

Enemies of Democracy

Individuals or groups that oppose the principles of democracy, including participation, equality, and freedom.

Solidarity

A unity of purpose or togetherness among individuals with a common interest, often in support of social or political causes.

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Cooperative efforts by a group of individuals working together towards a common goal or interest.

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