If the world real interest rate were 6% and the domestic real interest rate in Denmark were 9%,borrowers in Denmark would borrow at the rate of ________ and lenders in Denmark would lend at the rate of ________.
A) 6%; 6%
B) 6%; 9%
C) 9%; 6%
D) 9%; 9%

Question

Quizplus · Accepted Answer

Borrowers in Denmark would prefer to borrow at the lower world real interest rate of 6%, while lenders would lend at the same rate to remain competitive.

If the World Real Interest Rate Were 6% and the Domestic