| If real interest rates were to increase in foreign countries while remaining fixed in the United States, all else equal, net capital outflow must: |
| | | A. none of the above | | | B. fall | | | C. remain unchanged | | | D. increase | |
| If real interest rates were to increase in foreign countries while remaining fixed in the United States, all else equal, net capital outflow must: |
| | | A. none of the above | | | B. fall | | | C. remain unchanged | | | D. increase | |
Increase, Because with increase in interest in foreign makrets, investors will be motivated to invest more in foreign countries.
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