If the Nominal U

Multiple Choice

If the nominal U.S. return (on an investment in a foreign instrument that earns the nominal foreign interest rate) is less than the nominal foreign return plus the exchange rate adjustment, then lenders will supply ____ funds in the U.S. market and borrowers will borrow ___ funds in foreign markets.

A) less, less
B) more, more
C) more, less
D) less, more