Question: Answer it correctly please. My last attempt. Explain all choice. I ll rate accordingly. Suppose that Bank of Canada policy leads to higher interest rates
Answer it correctly please. My last attempt. Explain all choice. I ll rate accordingly.

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, 0 the interest rate increase would not change the value of the dollar, so the decrease in aggregate demand would be less. the interest rate increase would cause a lower increase in the value of the dollar, so the decrease in aggregate demand would be higher. the interest rate increase would cause a higher increase in the value of the dollar, so the decrease in aggregate demand would be higher. 0 the interest rate increase would cause a higher increase in the value of the dollar, so the decrease in aggregate demand would be less
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