F the world real interest rate decreases from 3% to 2%, which of the following is true?

Question

A. National saving rises.

B. Canadian savers are less willing to purchase Canadian bonds.

C. Net capital outflow decreases.

D. Foreigners are less willing to purchase Canadian bonds.

Answer 1

C. Net capital outflow decreases.

Answer 2

I would go with D.  If rates are low, then interest in the bonds would be low also.