If the nominal U.S. return (on an investment in a foreign instrument that earns the nominal foreign interest rate) is less than the nominal foreign return plus the exchange rate adjustment, then lenders will supply ____ funds in the U.S. market and borrowers will borrow ___ funds in foreign markets.
A)less, less
B)more, more
C)more, less
D)less, more

Question

Quizplus · Accepted Answer

The Answer of If the nominal U.S. return (on an investment in a foreign instrument that earns the nominal foreign interest rate) is less than the nominal foreign return plus the exchange rate adjustment, then lenders will supply ____ funds in the U.S. market and borrowers will borrow ___ funds in foreign markets.
A)less, less
B)more, more
C)more, less
D)less, more

If the Nominal U