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

Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter19: International Finance And The Foreign Exchange Market
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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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