If Canadian Citizens Decide to Purchase More Foreign Assets at Each

question 122

Multiple Choice

If Canadian citizens decide to purchase more foreign assets at each interest rate, which statement would best describe the effects?

• A) The real interest rate increases, the real exchange rate of the dollar appreciates, and Canadian net capital outflow decreases.
• B) The real interest rate increases, the real exchange rate of the dollar depreciates, and Canadian net capital outflow increases.
• C) The real interest rate decreases, the real exchange rate of the dollar depreciates, and Canadian net capital outflow decreases.
• D) The real interest rate decreases, the real exchange rate of the dollar appreciates, and Canadian net capital outflow increases.

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Definitions:

Supply Chain

The network of all the individuals, organizations, resources, activities, and technology involved in the creation and sale of a product, from the delivery of source materials from the supplier to the manufacturer through to its eventual delivery to the end user.

Responsiveness

The ability of a company or organization to quickly and effectively respond to customer needs, changes in the market, or operational challenges.

Key Success Factor

Critical elements or factors that are essential for an organization to achieve its business objectives and be successful.

Core Competency

Fundamental strength or advantage that a business possesses, central to its operations and critical to its long-term success.