Are you taking CLEP classes? Try clep.ai
| preferred AP College board partner for AP classes
medium Solved by 2 students

Foreign Interest Rates and Loanable Funds Market

Mark
< Prev
Next >

Suppose a foreign country increases its interest rates while interest rates in the United States remain unchanged. What is the most likely effect on the loanable funds market in the United States?

A

Decrease in demand for loanable funds as investment falls

B

No significant change as domestic factors outweigh international capital flows

C

Decrease in supply of loanable funds as capital flows abroad

D

Increase in supply of loanable funds as domestic saving rises

Hint
Did You Know?
Explain Why
Explain All Answers
Check Answer
Show Correct Answer
Report Question

Question Leaderboard

Not enough data yet to show leaderboard.

AI Tutor

How can I help?

APFIVE © 2020.
Email: apfive@apfive.org|Privacy Policy|