Assume That Canada Initially Faces Payments Equilibrium in Its Merchandise

question 72

Multiple Choice

Assume that Canada initially faces payments equilibrium in its merchandise trade account as well as in its capital and financial account.Now suppose that Canadian interest rates increase to levels higher than those abroad.For Canada,this tends to promote:

• A) Net financial inflows
• B) Net financial outflows
• C) Net merchandise exports
• D) Net merchandise imports

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Definitions:

Strength Training

A form of physical exercise specializing in the use of resistance to induce muscular contraction, which builds the strength, anaerobic endurance, and size of skeletal muscles.

Aerobic

Pertains to processes or activities that require the presence of oxygen, often related to exercise that improves cardiovascular health.

Low-Impact

Refers to activities or actions that cause minimal stress or damage to the body or environment.

Resistance

The refusal to accept or comply with something; the attempt to prevent something by action or argument.