If interest rates in Canada rise,
A) the value of the dollar will fall as foreign investors sell their Canadian investments.
B) the value of the dollar will rise as the foreign investors increase their holdings of Canadian investments.
C) the value of the dollar will fall as foreign investors increase their holdings of Canadian investments.
D) the value of the dollar will rise as foreign investors sell their Canadian investments.
E) the value of the dollar will remain unchanged as equal numbers of foreign investors sell and buy Canadian investments.
Correct Answer:
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