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

Question

Quizplus · Accepted Answer

If interest rates rise more in the U.S. than in France, it would make U.S. bonds more attractive to French citizens, and they would buy more U.S. bonds. At the same time, it would make French bonds less attractive to U.S. citizens, and they would buy fewer French bonds. Therefore, U.S. citizens would buy fewer French bonds, and French citizens would buy more U.S. bonds, leading to choice C.

If Interest Rates Rose More in the U