An inflow of investment funds into the United States from overseas is likely to result from a(n):
A. Decline in expectations for economic growth in the United States
B. Growing belief among investors that the U.S. dollar ($) is overvalued
C. Rise in U.S. interest rates relative to world interest rates
D. Increase in the U.S. inflation rate
C. Rise in U.S. interest rates relative to world interest rates
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Which of the following is not a component of aggregate expenditure?
a. Consumption expenditures b. Investment c. Imports d. Rent e. Government purchases
Which of the following was observed in the U.S. during the 1970s, when the economy faced a series of adverse supply shocks?
a. The economy experienced deflation b. There was a massive increase in real GDP c. Total output declined and the price level increased d. Total ouput increased thereby driving up the price level
Relative-price variability
a. rises with inflation, leading to an improved allocation of resources. b. rises with inflation, leading to a misallocation of resources. c. falls with inflation, leading to an improved allocation of resources. d. falls with inflation, leading to a misallocation of resources.
For which of the following products would you expect the index of intra-industry trade to be lowest?
a. golf clubs b. automobiles c. whiskey d. natural gas