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Which of the Following Is True

Question 2

Multiple Choice

Which of the following is true?


A) When real interest rates are higher in country A than country B there will tend to be a capital flow from country B to country A.
B) When real interest rates are higher in country A than country B there will tend to be a capital flow from country A to country B.
C) Capital flows will tend to increase real interest rates in countries with a capital inflow.
D) Both b. and c. are correct.

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