A country with a low saving rate tends to have a _____ domestic real interest rate that will _____ capital inflows.
A)high; attract
B)high; discourage
C)high; not affect
D)low; attract

Question

Quizplus · Accepted Answer

A country with a low saving rate tends to have a high domestic real interest rate to attract capital inflows, as higher interest rates offer better returns to investors, drawing in foreign capital.

A Country with a Low Saving Rate Tends to Have