If the world real interest rate falls, then a country that is an international lender
A)becomes a debtor nation.
B)increases the amount of its lending.
C)decreases the amount of its lending.
D)does not change the amount of its lending.
E)none of the above

Question

Quizplus · Accepted Answer

If the world real interest rate falls, it becomes less profitable for a country to lend internationally. Therefore, the country decreases the amount of its lending as it seeks more profitable investment opportunities elsewhere.

If the World Real Interest Rate Falls, Then a Country