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A Rise in the Real Interest Rate in Canada May

Question 74

Multiple Choice

A rise in the real interest rate in Canada may be expected to lower demand for Canadian goods through each of these channels EXCEPT


A) raising the borrowing cost and discouraging spending on consumer durables.
B) raising the borrowing costs and discouraging investment on fixed capital.
C) raising the borrowing costs and discouraging residential investment.
D) raising the value of the domestic currency and discouraging net exports.
E) raising the value of the domestic currency and discouraging imports.

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