Assume That a War Breaks Out Abroad,and Foreign Investors Choose

Multiple Choice

Assume that a war breaks out abroad,and foreign investors choose to invest more in a large safe country,the United States.Then,according to the basic open-economy model,the U.S.real interest rate:

A) and net exports will both fall.
B) will fall and net exports will rise.
C) will rise and net exports will fall.
D) and net exports will both rise.