Multiple Choice
If capital is perfectly mobile internationally, then
A) significant differences in interest rates across countries can persist over a long time
B) one country's interest rates can be substantially higher than the world interest rate over the long run
C) countries with interest rates much lower than in the rest of the world will experience an outflow of capital
D) an increase in U.S. interest rates will worsen the U.S. balance of payments since U.S. banks are more willing to lend internationally
E) all of the above
Correct Answer:
Verified
Correct Answer:
Verified
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