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If Interest Rates in Canada Rise Above Those in the Rest

Question 156

Multiple Choice

If interest rates in Canada rise above those in the rest of the world, then


A) the demand for Canadian dollars decreases
B) exports from Canada to other countries increases
C) imports into Canada from other countries decreases
D) foreigners buying up U.S. assets in the U.S. year after year
E) the balance of payments becomes negative

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