Which of the Following Is NOT True Regarding Foreign Interest

question 63

Multiple Choice

Which of the following is NOT true regarding foreign interest rates?

• A)The large flow of funds between countries causes interest rates in any given country to become more susceptible to interest rate movements in other countries.
• B)If a foreign country is experiencing high inflation, its equilibrium interest rate is likely to be higher than the U.S. equilibrium interest rate.
• C)An increase in a foreign country's interest rates will likely decrease demand for U.S. loanable funds by businesses in that country.
• D)All of these are true regarding foreign interest rates.