If interest rates rose more in Germany than in the U.S., then other things the same
A)U.S. citizens would buy more German bonds and German citizens would buy more U.S. bonds.
B)U.S. citizens would buy more German bonds and German citizens would buy fewer U.S. bonds.
C)U.S. citizens would buy fewer German bonds and German citizens would buy more U.S. bonds.
D)U.S. citizens would buy fewer German bonds and German citizens would buy fewer U.S. bonds.

Question

Quizplus · Accepted Answer

Higher interest rates in Germany would attract U.S. investors to buy more German bonds for better returns, while German investors would find U.S. bonds less attractive and buy fewer of them.

If Interest Rates Rose More in Germany Than in the U.S