Suppose That Real Interest Rates in the U

question 115

Multiple Choice

Suppose that real interest rates in the U.S. rise relative to real interest rates in other countries. This increase would make foreigners

• A)more willing to purchase U.S.bonds, so U.S.net capital outflow would fall.
• B)more willing to purchase U.S.bonds, so U.S.net capital outflow would rise.
• C)less willing to purchase U.S.bonds, so U.S.net capital outflow would fall.
• D)less willing to purchase U.S.bonds, so U.S.net capital outflow would rise.

---

Definitions:

Graduation Gift

An item or sum of money given to someone to celebrate the completion of their graduation.

Talon

In finance, a talon is a coupon on a bearer bond that allows the holder to collect future unattached coupons when they become due.

Judicial Sale

The sale of property authorized by a court, often as a result of foreclosure or to enforce a judgment.

Holder In Due Course

A term in commercial law referring to a party who acquires a negotiable instrument in good faith for value, with certain protections against prior claims.