Assume That Foreign Investors Who Have Invested in U

Multiple Choice

Assume that foreign investors who have invested in U.S. securities decide to decrease their holdings of U.S. securities and to instead increase their holdings of securities in their own countries. This should cause the supply of loanable funds in the United States to______ and should place ____ pressure on U.S. interest rates.

A) decrease; upward
B) decrease; downward
C) increase; downward
D) increase; upward