Explain the impacts of Canadian firms learning positive economicnews about the future in the context of the market for loanablefunds. For example, when the price of oil increases following theunexpected news that Saudi Arabia and Russia have made up andagreed to lower production to support the price of oil. Contrastthe impacts if Canada is better approximated by a closed economyversus if Canada is better approximated by an open economy. Youranswers do not need to go outside the impacts in the market forloanable funds.
