When the interest rate in the U. S. rises, U. S. financial assets: become less attractive to foreign buyers. become more attractive to both foreign and domestic buyers. become less attractive to both foreign and domestic buyers. become less attractive to domestic buyers and more attractive to foreign buyers.

Question

Ross

Business

14 September, 17:24

When the interest rate in the U. S. rises, U. S. financial assets: become less attractive to foreign buyers. become more attractive to both foreign and domestic buyers. become less attractive to both foreign and domestic buyers. become less attractive to domestic buyers and more attractive to foreign buyers.

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Answers (1)

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Ari Whitehead · Answer 1

Becomes less attractive to domestic buyers and more attractive to foreign buyers.

Explanation:

When the interest rates rise, it attracts foreign buyers. This increases the demand and value of the United States dollar. lower interest rates is unattractive for foreign investment and decreases the value and demand of the dollar.

But on the other hand, a higher interest rate is unattractive to domestic buyers.