9) When foreign securities become more attractive to U.S. investors, there is an

Question

9) When foreign securities become more attractive to U.S. investors,

there is an outflow of dollars from the United States and the dollar appreciates.

there is an outflow of dollars from the United States and the dollar depreciates.

the foreign currencies depreciate relative to the dollar.

imports into the United States will increase.

there is an outflow of dollars from the United States and the dollar appreciates.

there is an outflow of dollars from the United States and the dollar depreciates.

the foreign currencies depreciate relative to the dollar.

imports into the United States will increase.

Explanation / Answer

Answer b)

There is an outflow of dollars from the United States and the dollar depreciates.

There will be outflow fo dolllars because investors will be investing abroad and demanding foreign currency for the same and when demand for a currency decreases and its supply increases, it lead sot depreciation in the value fo that currency.

There is an outflow of dollars from the United States and the dollar depreciates.

There will be outflow fo dolllars because investors will be investing abroad and demanding foreign currency for the same and when demand for a currency decreases and its supply increases, it lead sot depreciation in the value fo that currency.

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