If the interest rate rises in the U.S.while other variables remain constant
A)capital inflows into the U.S.will increase.
B)capital inflows into the U.S.may not materialize.
C)capital will flow out of the U.S.
D)none of the options

Question

Quizplus · Accepted Answer

With an increase in interest rates, investors are likely to seek higher returns by investing in the U.S. This increased demand for U.S. assets will lead to an increase in capital inflows into the country.

If the Interest Rate Rises in the U