Which of the following is most likely to result if foreigners decide to withdraw the funds that they have loaned to the United States?
A)U.S.net exports will fall
B)U.S.net capital outflow will rise
C)U.S.domestic investment will rise
D)the dollar will appreciate

Question

Quizplus · Accepted Answer

If foreigners withdraw funds, it means they are reducing their investment in the U.S., leading to an increase in U.S. net capital outflow as the U.S. will have to finance its deficit through other means.

Which of the Following Is Most Likely to Result If