An Increase in Real Interest Rates in the United States

question 9

Multiple Choice

An increase in real interest rates in the United States

• A)discourages both U.S.and foreign residents from buying U.S.assets.
• B)encourages both U.S.and foreign residents to buy U.S.assets.
• C)encourages U.S.residents to buy U.S.assets,but discourages foreign residents from buying U.S.assets.
• D)encourages foreign residents to buy U.S.assets,but discourages U.S.residents from buying U.S.assets.