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Real interest rate Standard and Poor's reviewed the banking sector of Canada recently and ranked it score '2' due to its very low risk. Investors have welcomed the new grade at a time when very few developed economies are perceived as safe havens. Modify t three diagrams to describe the effects of ranking on Canada's open economy. Note that USD is United States dollars, CAD is Canadian dollars and NCO is net capital outflow. Demand Supply Quantity of loanable funds Real interest rate NCO Net capital outflow

Real interest rate Standard and Poor's reviewed the banking sector of Canada recently and ranked it score '2' due to its very low risk. Investors have welcomed the new grade at a time when very few developed economies are perceived as safe havens. Modify t three diagrams to describe the effects of ranking on Canada's open economy. Note that USD is United States dollars, CAD is Canadian dollars and NCO is net capital outflow. Demand Supply Quantity of loanable funds Real interest rate NCO Net capital outflow

Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter31: Open-Economy Macroeconomics: Basic Concepts
Section: Chapter Questions
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Real interest rate Standard and Poor's reviewed the banking sector of Canada recently and ranked it score '2' due to its very low risk. Investors have welcomed the new grade at a time when very few developed economies are perceived as safe havens. Modify t three diagrams to describe the effects of ranking on Canada's open economy. Note that USD is United States dollars, CAD is Canadian dollars and NCO is net capital outflow. Demand Supply Quantity of loanable funds Real interest rate NCO Net capital outflow
Transcribed Image Text:Real interest rate Standard and Poor's reviewed the banking sector of Canada recently and ranked it score '2' due to its very low risk. Investors have welcomed the new grade at a time when very few developed economies are perceived as safe havens. Modify t three diagrams to describe the effects of ranking on Canada's open economy. Note that USD is United States dollars, CAD is Canadian dollars and NCO is net capital outflow. Demand Supply Quantity of loanable funds Real interest rate NCO Net capital outflow
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