If a Country Has a High Savings Rate Relative to Other

Multiple Choice

If a country has a high savings rate relative to other countries, then the

A) supply of loanable funds is larger, interest rates are lower, and net capital outflow is higher for that country than for others.
B) supply of loanable funds is smaller, interest rates are higher, and net capital outflow is lower for that country than for others.
C) demand for loanable funds is larger, interest rates are higher, and net capital outflow is lower for that country than for others.
D) government must subsidize production in order to encourage international trade.