Other things the same,if the Canadian real interest rate were to increase,Canadian net capital outflow
A)and net capital outflow of other countries would rise.
B)and net capital outflow of other countries would fall.
C)would rise, while net capital outflow of other countries would fall.
D)would fall, while net capital outflow of other countries would rise.

Question

Quizplus · Accepted Answer

An increase in the Canadian real interest rate would attract more foreign capital, leading to a decrease in Canadian net capital outflow. Conversely, other countries might experience an increase in net capital outflow as investors move their capital to Canada for higher returns.

Other Things the Same,if the Canadian Real Interest Rate Were