If the risk of holding assets in foreign countries rises relative to the risk of holding U.S assets,then
A)U.S.net capital outflow rises which increases the U.S.exchange rate.
B)U.S.net capital outflow rises which decreases the U.S.exchange rate.
C)U.S.net capital outflow falls which increases the U.S.exchange rate.
D)U.S.net capital outflow falls which decreases the U.S.exchange rate.

Question

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The Answer of If the risk of holding assets in foreign countries rises relative to the risk of holding U.S assets,then
A)U.S.net capital outflow rises which increases the U.S.exchange rate.
B)U.S.net capital outflow rises which decreases the U.S.exchange rate.
C)U.S.net capital outflow falls which increases the U.S.exchange rate.
D)U.S.net capital outflow falls which decreases the U.S.exchange rate.

If the Risk of Holding Assets in Foreign Countries Rises