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-(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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