Suppose That Real Interest Rates in the U

Multiple Choice

Suppose that real interest rates in the U.S. rise relative to real interest rates in other countries. This increase would make foreigners

A) more willing to purchase U.S.bonds, so U.S.net capital outflow would fall.
B) more willing to purchase U.S.bonds, so U.S.net capital outflow would rise.
C) less willing to purchase U.S.bonds, so U.S.net capital outflow would fall.
D) less willing to purchase U.S.bonds, so U.S.net capital outflow would rise.