2665EconomicsMedium
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?
Aremain totally in foreign countries
Bremain totally in the United States
Cflow from the United States to foreign countries
Dflow from foreign countries to the United States
Correct answer
C. flow from the United States to foreign countries
Explanation
The correct answer is flow from the United States to foreign countries.