Figure 13-2 
-Refer to the Figure13-2.Suppose that these diagrams refer to Canada.If the interest rate was initially at r0 and Japan voluntarily restricted its exports to Canada,what would happen to the interest rate?
Definitions:
Expected Variance
The anticipated value of the squared deviation of a random variable from its mean, used to predict the volatility or risk of financial returns.
Holding-Period Return
Is the total return received from holding an asset or portfolio of assets over a period of time, typically expressed as a percentage.
Dividend
A portion of a company's earnings distributed to shareholders, typically in cash or additional stock.
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