Other things the same,if the Japanese real interest rate were to increase,Japanese net capital outflow
A)and net capital outflow of other countries would rise.
B)and net capital outflow of other countries would fall.
C)would rise,while net capital outflow of other countries would fall.
D)would fall,while net capital outflow of other countries would rise.

Question

Quizplus · Accepted Answer

If the Japanese real interest rate increases, it becomes more attractive for investors to invest in Japan, leading to a decrease in Japanese net capital outflow. Conversely, other countries may experience an increase in net capital outflow as investors move their capital to Japan for higher returns.

Other Things the Same,if the Japanese Real Interest Rate Were