Other things the same,which of the following could explain a rise in Sweden's net capital outflow?
A)interest rates on Swedish bonds rise
B)the probability of default on Swedish bonds rises
C)Sweden enacts a law reducing taxes on income earned by foreign-owned businesses operating in Sweden
D)None of the above are correct.

Question

Quizplus · Accepted Answer

An increase in the probability of default on Swedish bonds would make them less attractive to investors, leading to an increase in net capital outflow as investors move their capital to safer investments outside of Sweden.

Other Things the Same,which of the Following Could Explain a Rise