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-(Figure: The Loanable Funds Model in the Canadian Market) Refer to Figure: The Loanable Funds Model in the Canadian Market.Assume that each country's (Canada and Britain) equilibrium interest rate is 4%.To reconcile the apparent disequilibrium in both markets,assuming that assets and liabilities are viewed as homogeneous,capital _____ will _____ interest rates.
A) outflow from Canada;lower Canadian
B) outflow from Britain;lower British
C) outflow from Britain;raise British
D) inflow to Canada;raise Canadian
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