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Use the following to answer questions: Use the following to answer questions:   -(Figure: The Loanable Funds Model in the U.S. Market)  Refer to Figure: The Loanable Funds Model in the U.S. Market. Assume that each country's equilibrium interest rate is 4%. To reconcile the apparent disequilibrium in both markets, assuming that assets and liabilities are viewed as homogeneous, capital _____ will _____ interest rates. A)  outflow from the United States; lower U.S. B)  outflow from Britain; lower British C)  outflow from Britain; raise British D)  inflow to the United States; raise U.S.
-(Figure: The Loanable Funds Model in the U.S. Market) Refer to Figure: The Loanable Funds Model in the U.S. Market. Assume that each country's equilibrium interest rate is 4%. To reconcile the apparent disequilibrium in both markets, assuming that assets and liabilities are viewed as homogeneous, capital _____ will _____ interest rates.


A) outflow from the United States; lower U.S.
B) outflow from Britain; lower British
C) outflow from Britain; raise British
D) inflow to the United States; raise U.S.

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