When interest rates in the U.S. increase, we could expect:
A. more foreigners investing in U.S. assets.
B. less foreigners investing in U.S. assets.
C. more U.S. citizens investing abroad.
D. less U.S. citizens investing in U.S. assets.
A. more foreigners investing in U.S. assets.
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The firm's short run supply curve is equal to the
A) entire marginal cost curve. B) marginal cost curve above the AVC curve. C) marginal cost curve above the ATC curve. D) marginal cost curve above the AFC curve.
The opportunity cost of capital is
A) the rate of return realized on an investment. B) the rate of return that could be earned by the owner's capital were it used elsewhere. C) the rate used to calculate a firm's tax liability. D) the rate of interest the government uses to calculate legal business tax penalties.