If the real interest rate in Canada increases,foreign investors will ________ their demand for Canadian dollars because they desire to ________ more Canadian financial assets.
A) increase; buy
B) increase; sell
C) decrease; buy
D) decrease; sell

Question

Quizplus · Accepted Answer

When the real interest rate in Canada increases, foreign investors are likely to increase their demand for Canadian dollars because they want to buy more Canadian financial assets that now offer higher returns.

If the Real Interest Rate in Canada Increases,foreign Investors Will