An Increase in the Real Interest Rate in the United

question 117

Multiple Choice

An increase in the real interest rate in the United States changes the quantity of loanable funds demanded because

• A)U.S.residents will want to buy more foreign assets.
• B)Foreign residents will want to buy more U.S.goods and services.
• C)U.S.firms will want to purchase fewer U.S.capital goods.
• D)All of the above are correct.

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