When interest rates in the U.S.increase,we can expect:
A)NCO to decrease,because capital inflow is increasing.
B)NCO to increase,because capital inflow is increasing.
C)NCO to decrease,because capital outflow is increasing.
D)NCO to increase,because capital outflow is increasing.

Question

Quizplus · Accepted Answer

When U.S. interest rates increase, foreign investors are more likely to invest in the U.S., leading to increased capital inflow and a decrease in Net Capital Outflow (NCO).

When Interest Rates in the U.S.increase,we Can Expect