Which of the following is true?
a. When real interest rates are higher in country A than country B there will tend to be a capital flow from country B to country A.
b. When real interest rates are higher in country A than country B there will tend to be a capital flow from country A to country B.
c. Capital flows will tend to increase real interest rates in countries with a capital inflow

d. Both b. and c. are correct.


d

Economics

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