Loanable funds flow among countries because ________.
A) including differences in risk, the real interest rate is always higher in some countries than in others and this real interest rate differential will not change
B) funds flow into the country with the highest nominal interest rate and out of the country in which the nominal interest rate is lowest
C) it creates more stability for domestic businesses to have foreign investors
D) funds flow into the country with the highest real interest rate and out of the country in which the real interest rate is lowest
E) rational investors want diversified portfolios
Correct Answer:
Verified
Q129: Table 23.3.3 Q130: The government of Greece is running a Q133: Table 23.3.2 Q135: A small country is a net foreign Q135: A government budget surplus occurs, which _ Q136: An increase in the government budget deficit Q136: In the market for loanable funds, a Q138: If we import more than we export Q141: A country's imports are $490 billion and Q142: A country's exports are $490 billion and
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents