A fall in the real interest rate in Canada may be expected to raise demand for Canadian goods through each of these channels EXCEPT
A) lowering of borrowing cost and stimulating spending on consumer durables.
B) lowering of borrowing costs and stimulating investment on fixed capital.
C) lowering of borrowing costs and stimulating residential investment.
D) lowering of the value of the domestic currency and stimulating net exports.
E) lowering of the value of the domestic currency and stimulating imports.
Correct Answer:
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