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29-05-2024
Business

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What is the impact of a monetary contraction in a small open economy?
a. Canadian and foreign savers find the Canadian interest rate more attractive than the world rate and as a result they sell foreign assets to buy Canadian assets.
b. Canadian and foreign savers find the Canadian interest rate more attractive than the world rate and as a result they sell Canadian assets to buy foreign assets.
c. Canadian and foreign savers find the Canadian interest rate less attractive than the world rate and as a result they sell foreign assets to buy Canadian assets.
d. Canadian and foreign savers find the Canadian interest rate less attractive than the world rate and as a result they sell Canadian assets to buy foreign assets.

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