Author Question: An increase in United States net foreign direct investment would occur if A) United States ... (Read 121 times)

audie · **on:** Jun 29, 2018

An increase in United States net foreign direct investment would occur if

A) United States citizens have increased the value of foreign stocks and bonds they own.
B) net foreign investment increases.
C) United States citizens have increased their building or purchasing of facilities in foreign countries.
D) net capital flows decrease.

Question 2

Which of the following is most important in explaining exchange rate fluctuations in the short run?

A) relative price levels across countries
B) relative rates of productivity growth across countries
C) preferences for domestic and foreign goods
D) interest rates