(Answered) Suppose that the world interest rate risesa if the

Management Studies

Suppose that the world interest rate rises:

A) If the elasticity of national saving in relation to the world interest rate is very high, will this rise in the world interest rate have a large or small effect on Canada's net capital outflow

B) If the elasticity of national exports in relation to the real exchange rate is very low, will this rise in the worlds interest rate have a large or small effect on Canada's real exchange rate.

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