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Economics Mcqs
Q
Assume identical interest rates on comparable securities in the United States and foreign countries. Suppose investors anticipate that in the future the U.S dollar will depreciate against foreign currencies. investment funds would tend to ?
AA. Flow from the united states to foreign countries
BB. Flow from foreign countries to the united states
CC. Remain totally in foreign countries
DD. Remain totally in the united states
Correct Answer:
A. A. Flow from the united states to foreign countries