An increase in real interest rates in the United States
A)discourages both U.S.and foreign residents from buying U.S.assets.
B)encourages both U.S.and foreign residents to buy U.S.assets.
C)encourages U.S.residents to buy U.S.assets,but discourages foreign residents from buying U.S.assets.
D)encourages foreign residents to buy U.S.assets,but discourages U.S.residents from buying U.S.assets.

Question

Quizplus · Accepted Answer

Higher real interest rates make U.S. assets more attractive to both U.S. and foreign investors due to the potential for higher returns.

An Increase in Real Interest Rates in the United States