In the absence of international capital flows, the equilibrium interest rate in the U.S. market for loanable funds is 3%, while in Germany it is 7%. International borrowing and lending between the United States and Germany may result in a common interest rate of _____ and _____.
A.
5%; capital inflows to the United States matching the capital outflows from Germany
B.
3%; massive capital inflows from Germany to the United States
C.
4%; capital outflows from the United States matching the capital inflows to Germany
D.
7%; massive capital inflows from the United States to Germany