When interest rates in the U.S.decline,we can expect:
A)net capital outflow to increase.
B)net capital outflow to decrease.
C)net capital outflow to be unaffected.
D)net capital outflow to be zero.

Question

Quizplus · Accepted Answer

When interest rates in the U.S. decline, domestic investments become less attractive, leading investors to seek higher returns abroad, thus increasing net capital outflow.

When Interest Rates in the U.S.decline,we Can Expect