If the World Real Interest Rate Exceeds the Interest Rate

question 86

Multiple Choice

If the world real interest rate exceeds the interest rate that would occur if the Canadian economy were closed,then what would the Canadian net capital outflow be?

• A) positive
• B) negative
• C) decreasing
• D) increasing

---

Definitions:

Liability

The legal responsibility for one's acts or omissions, potentially resulting in the requirement to make restitution to affected parties.

Temptation

A desire to engage in short-term urges for enjoyment or fulfillment at the expense of potentially negative long-term effects.

Quit

To leave or discontinue participation in an activity, job, or the use of a service or software.

Human Rights Law

A body of international and domestic laws designed to promote and protect human rights and freedoms.