When real interest rates are higher in country A than country B, there will tend to be a capital flow from country B to country A.

Name: When real interest rates are higher in country A than country B, there will tend to be a capital flow from country B to country A.
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When real interest rates are higher in country A than country B, investors will tend to invest more in country A to earn higher returns. This leads to a capital flow from country B to country A.

When Real Interest Rates Are Higher in Country a Than