Suppose real interest rates in Canada rise, while those in Australia remain constant. Then:
A) Australian investors should sell an increased amount of bonds issued by borrowers in Australia.
B) Australian investors should buy an increased amount of bonds issued by borrowers in Canada.
C) Australian investors should buy less bonds issued by borrowers in Canada.
D) Canadian investors should buy an increased amount of bonds issued by borrowers in Australia.
Correct Answer:
Verified
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