If real interest rates rose less in U.K. than in the United States, then other things the same
A)U.S.citizens would buy fewer U.K.bonds and British people would buy fewer U.S.bonds.
B)U.S.citizens would buy fewer U.K.bonds and British people would buy more U.S.bonds.
C)U.S.citizens would buy more U.K.bonds and British people would buy more U.S.bonds.
D)U.S.citizens would buy more U.K.bonds and British people would buy fewer U.S.bonds.

Question

Quizplus · Accepted Answer

When real interest rates rise in the United States more than in the U.K., U.S. bonds become more attractive to investors due to higher returns, leading U.S. citizens to buy fewer U.K. bonds and British people to buy more U.S. bonds.

If Real Interest Rates Rose Less in U