Question 42 a. Why do higher real interest rates lead to lower net capital outflow? Not yet answered b. Complete the entries of the table below with the direction of the variables that change in response to the events in the first column. Marked out of 8.0 Canadian real Flag Canadian Canadian net exchange rate question Canadian real domestic capital of domestic Canadian trade interest rate investment outflow currency balance Canadian government budget deficit increases Canada imposes import quotas Capital flight from Canada 1 i B I IE SS