Other things equal,countries with a ______ demand for capital and/or a _____ supply of capital will have higher interest rates.As a result,they will be the recipients of capital_____.

Question

Quizplus · Accepted Answer

Countries with a high demand for capital and/or a low supply of capital will have higher interest rates, as investors will demand higher returns to compensate for the increased risk. This will attract capital inflows from other countries where interest rates are lower. Thus, choice D (high demand for capital and low supply of capital) would result in capital inflows.

Other Things Equal,countries with a ______ Demand for Capital And/or