If interest rates rose more in Japan than in the U.S. ,then other things the same
A)U.S.citizens would buy more Japanese bonds and Japanese citizens would buy more U.S.bonds.
B)U.S.citizens would buy more Japanese bonds and Japanese citizens would buy fewer U.S.bonds.
C)U.S.citizens would buy fewer Japanese bonds and Japanese citizens would buy more U.S.bonds.
D)U.S.citizens would buy fewer Japanese bonds and Japanese citizens would buy fewer U.S.bonds.

Question

Quizplus · Accepted Answer

If interest rates rise more in Japan than in the U.S., U.S. citizens would be attracted to the higher returns in Japan and buy more Japanese bonds, while Japanese citizens would find U.S. bonds less attractive and buy fewer of them.

If Interest Rates Rose More in Japan Than in the U.S