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An Increase in Real Interest Rates in the United States

Question 12

Multiple Choice

An increase in real interest rates in the United States changes the quantity of loanable funds demanded because


A) U.S. residents will want to buy more foreign assets.
B) Foreign residents will want to buy fewer foreign assets.
C) U.S. firms will want to purchase fewer U.S. capital goods.
D) All of the above are correct.

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