Suppose that the local real interest rate rises relative to real interest rates in other countries. This increasewould make foreignersQuestion 22Not yetansweredSelect one:Marked out of1.00a.more willing to purchase local bonds, so capital inflow would rise.P FlagO b. more willing to purchase local bonds, so capital inflow would fall.questionc. less willing to purchase local bonds, so capital inflow would rise.O d. less willing to purchase local bonds, so capital inflow would fall.Previous pageNext pageReset user tour on this pageDEC山T四AtvMacBook Proesc....

Answer: If the local real interest rate rises relative to other countries then foreigners will be…

Question 22 Suppose that the local real interest rate rises relative to real interest rates in other countries. This increase would make foreigners Not yet answered Select one: Marked out of 1.00 a. more willing to purchase local bonds, so capital inflow would rise. P Flag question O b. more willing to purchase local bonds, so capital inflow would fall. O c. less willing to purchase local bonds, so capital inflow would rise. O d. less willing to purchase local bonds, so capital inflow would fall.

Question 22 Suppose that the local real interest rate rises relative to real interest rates in other countries. This increase would make foreigners Not yet answered Select one: Marked out of 1.00 a. more willing to purchase local bonds, so capital inflow would rise. P Flag question O b. more willing to purchase local bonds, so capital inflow would fall. O c. less willing to purchase local bonds, so capital inflow would rise. O d. less willing to purchase local bonds, so capital inflow would fall.

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter31: Open-Economy Macroeconomics: Basic Concepts

Section: Chapter Questions

Problem 4PA

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