If real interest rates in the US increase relative to real interest rates in other countries which of the following will occur?
a. capital will flow out of the US
b the demand for loanable funds in the US will increase
c. the supply of the loanable funds will increase in other countries
d. the supply of loanable funds will increase
e. the demand for loanable funds will increase in other countries
Ans: d. the supply of loanable funds will increase
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