If the Canadian Real Interest Rate Exceeds the World Real

question 71

Multiple Choice

If the Canadian real interest rate exceeds the world real interest rate, what would Canadian savers most likely do?

• A) Canadian savers would prefer to buy foreign assets.
• B) Canadian savers would prefer to wait until the real interest rate falls to equal the world interest rate.
• C) Canadian savers would sell their Canadian assets and buy foreign assets instead.
• D) Canadian savers would sell their foreign assets and buy Canadian assets instead.

---

Definitions:

Proportioning Solenoids

Devices used in automotive braking systems to regulate the pressure between front and rear brakes, enhancing stability and control.

PWM Signal

A PWM (Pulse Width Modulation) signal is a method used in electrical control systems to regulate the amount of power delivered to a device by modifying the width of the pulse of the signal.

Allison TC10

A model of a fully automatic transmission designed by Allison Transmission, often used in heavy-duty commercial vehicles for optimized performance.

Countershafts

Secondary shafts in a gearbox that rotate to transfer motion from the main shaft to various gears, altering the output speed and torque.