An increase in Canadian interest rates can be expected to:
A)adversely affect Canadian exporters.
B)encourage investment spending by Canadian firms.
C)lower the foreign exchange value of the dollar.
D)cause a net outflow of foreign capital from Canada.

Question

Quizplus · Accepted Answer

An increase in Canadian interest rates typically strengthens the Canadian dollar, making Canadian goods more expensive for foreign buyers, thus adversely affecting Canadian exporters.

An Increase in Canadian Interest Rates Can Be Expected To