c. Net capital outow is negative, so foreign assets bought by Canadians are greater than Canadian assets bought by foreigners. (1. Net capital outow is negative, so Canadian assets bought by foreigners are greater than foreign assets bought by Canadians 0123uioisgsi01 Refer to the above graph. If the world interest rate equals 7 percent, what is the net capital outow? (5 marks) a. -$4000 b. -$2000 e. $2000 (1. $4000 What is net capital outow equal to? (1 mark) a. national saving minus the net exports b. domestic investment plus national saving c. national saving minus domestic investment d. domestic investment minus national saving If the quantity of loanable funds supplied is greater than the quantity demanded, what are the excess funds used for? (5 marks) a. Canadians to purchase foreign financial assets b. Canadians to purchase domestic investments c. foreigners to purchase Canadian assets d. foreigners to purchase Canadian goods Which statement is consistent with an appreciation ofthe dollar':1 (5 marks) a. Canadian goods become less expensive relative to foreign goods, which makes exports rise and imports fall. it, Canadian goods become less expensive relative to foreign goods. which makes exports fall and imports rise. 3'\" Canadian goods become more expensive relative to foreign goods, which makes exports rise and imports fall. d. Canadian goods become more expensive relative to foreign goods, which makes exports fall and im ports rise. What are the effects of an increase in the supply of loanable funds? (5 marks) a. Net capital outow and the real exchange rate both increase. b. Net capital outow and the real exchange rate both decrease. c. Net capital outflow increases, and the real exchange rate decreases. d. Net capital outflow decreases, and the real exchange rate increases