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Mexico suffered from capital flight in 1994. Which statement best describe the effect of this event on Canadian economy? 1. Canadian demand for loanable funds

Mexico suffered from capital flight in 1994. Which statement best describe the effect of this event on Canadian economy?

1. Canadian demand for loanable funds fell, Canadian net capital outflow rose.

2. Canadian demand for loanable funds rose, Canadian net capital outflow fell.

3. Canadian demand for loanable funds and Canadian net capital outflow fell.

4. Canadian demand for loanable funds and Canadian net capital outflow rose.

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