Scenario 33-1 Suppose That Political Instability in Other Countries Makes People Fear

Multiple Choice

Scenario 33-1
Suppose that political instability in other countries makes people fear for the value of their assets in these countries so that they desire to purchase more U.S assets.
-Refer to Scenario 33-1. What would the change in the interest rate created by foreigners wanting to buy more U.S. assets do to investment spending in the United States?

A) Make it rise which by itself would increase U.S.aggregate demand.
B) Make it rise which by itself would decrease U.S.aggregate demand.
C) Make it fall which by itself would increase U.S.aggregate demand.
D) Make it fall which by itself would decrease U.S.aggregate demand.