Explain How Increased Investment in Eastern Europe as Well as in Other

question 66

Essay

Explain how increased investment in Eastern Europe as well as in other developing countries can result in a decline in U.S. investment. (Hint: What will happen to the demand for foreign currency by international investors relative to their demand for dollars?)

---

Definitions:

Excess (Deficiency)

The amount by which actual income exceeds or falls short of the budgeted amount.

Cash Budget

A financial tool used by businesses to plan for their cash inflows and outflows over a specific period to manage liquidity.

Budgeted Disbursements

Forecasted cash outflows for a specific period, often part of a company's cash budget and crucial for managing liquidity.

Desired Balance

The targeted amount of funds or resources a company or individual aims to have available at a certain point in time for a specific purpose.