If There Is a Decline in Home Bias, U

question 188

Multiple Choice

If there is a decline in home bias, U.S. residents are more likely to invest their savings in

• A) the domestic economy and this will lead to a decrease in the capital account surplus.
• B) foreign economies and this will lead to an increase in the capital account surplus.
• C) the domestic economy and this will lead to an increase in the capital account surplus.
• D) foreign economies and this will lead to a decrease in the capital account surplus.

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