Loanable Funds Flow Among Countries Because ________

Loanable funds flow among countries because ________.

A) including differences in risk, the real interest rate is always higher in some countries than in others and this real interest rate differential will not change
B) funds flow into the country with the highest nominal interest rate and out of the country in which the nominal interest rate is lowest
C) it creates more stability for domestic businesses to have foreign investors
D) funds flow into the country with the highest real interest rate and out of the country in which the real interest rate is lowest
E) rational investors want diversified portfolios

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