Question
Suppose that in Canada R&D (research and development) expenditures are not growing.However, in the rest of the world planned R&D expenditure is expected to increase
Suppose that in Canada R&D (research and development) expenditures are not growing.However, in the rest of the world planned R&D expenditure is expected to increase by2% per year (in real terms), leading to considerable technological innovations in the restof the world.
1. Whatwillhappen totheworldinterest rate?
2. Whatwillhappen toinvestmentin Canada?
3. Whatwillhappen toCanada'stradebalance?
4. WhatwillhappentoCanada'srealexchangerate?
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Macroeconomics
Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson
3rd Canadian edition
1319120083, 1319120085, 1319190111, 9781319190118, 978-1319120054
