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If Interest Rates in Canada Rise, the Effects Are

Question 101

Multiple Choice

If interest rates in Canada rise, the effects are:


A) exchange rate (er) of foreign currencies increases, Canada's exports fall, Canada's imports increase and . Canada's aggregate expenditures fall.
B) weaker Canadian dollar, lower next exports and lower aggregate expenditure in Canada.
C) higher exchange rate (er) of US dollars, lower net exports in Canada and lower aggregate expenditure in Canada.
D) stronger Canadian dollar, reduction in Canada's net exports, reduction in business investments in Canada and reduction in aggregate expenditures in Canada.

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