Multiple Choice
Other things the same, a decrease in the U.K. real interest rate induces
A) British people to buy fewer foreign assets, which increases U.K.'s net capital outflow.
B) British people to buy more foreign assets, which reduces U.K.'s net capital outflow.
C) foreigners to buy fewer U.K.assets, which increases U.K.'s net capital outflow.
D) foreigners to buy more U.K.assets, which reduces U.K.'s net capital outflow.
Correct Answer:

Verified
Correct Answer:
Verified
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