In the global loanable funds market,
A) funds flow into countries with the highest risk-adjusted interest rates and out of countries with the lowest risk-adjusted interest rates.
B) funds flow into countries with the lowest risk-adjusted interest rates and out of countries with the highest risk-adjusted interest rates.
C) when funds leave a country, a shortage of funds lowers the real interest rate.
D) when funds enter a country, a surplus of funds raises the real interest rate.
Correct Answer:
Verified
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