If the interest rate rises in the U.S. while other variables remain constant
A)capital inflows into the U.S. will increase.
B)capital inflows into the U.S. may not materialize.
C)capital will flow out of the U.S.
D)none of the above

Question

Quizplus · Accepted Answer

Higher interest rates in the U.S. make investments more attractive, leading to increased capital inflows as investors seek higher returns.

If the Interest Rate Rises in the U