23. What conditions would cause the Bank of Canada to strongly consider raising their key policy interest rate? What factors would cause them to strongly consider lowering their interest rate? ANS: 24. Explain how the exchange rate for the Canadian dollar is determined. What happens to the rate if someone from the U.S. buys Canadian products or services? ANS: 25.If interest rates are increased to be higher in Canada than in the U.S. how does it affect the exchange rate for the Canadian dollar? ANS: 26. What is the law of comparative advantage? ANS: 27. What are the benefits of barriers to trade? ANS: 28. What are the benefits of free trade