A Fall in the Real Interest Rate in Canada May

question 120

Multiple Choice

A fall in the real interest rate in Canada may be expected to raise demand for Canadian goods through each of these channels EXCEPT

• A) lowering of borrowing cost and stimulating spending on consumer durables.
• B) lowering of borrowing costs and stimulating investment on fixed capital.
• C) lowering of borrowing costs and stimulating residential investment.
• D) lowering of the value of the domestic currency and stimulating net exports.
• E) lowering of the value of the domestic currency and stimulating imports.

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Definitions:

Anne Sullivan

An American teacher best known for being the instructor and lifelong companion of Helen Keller.

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The smallest units of sound in a language that can distinguish one word from another.

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