Suppose that bank of Canada policy leads to higher interest rates in Canada. If Interest rates in countries that are major trading partners of Canada also rise. (Multiple Choice)

A. The interest rate increase would cause a higher increase in the value of the dollar, so the decrease in aggregate demand would be less.

B. The interest rate increase would not change the value of the dollar, so the decrease in aggregate demand would be less.

C. The interest rate increase would cause a higher increase in the value of the dollar, so the decrease in aggregate demand would be higher.

D. The interest rate increase would cause a lower increase int he value of the dollar, so the decrease in aggregate demand would be higher.