An Increase in the U.S.real Interest Rate Induces

question 273

Multiple Choice

An increase in the U.S.real interest rate induces

• A) Americans to buy more foreign assets,which increases U.S.net capital outflow.
• B) Americans to buy more foreign assets,which reduces U.S.net capital outflow.
• C) foreigners to buy more U.S.assets,which reduces U.S.net capital outflow.
• D) foreigners to buy more U.S.assets,which increases U.S.net capital outflow.