Which of the Following Is Most Likely to Result If

question 104

Multiple Choice

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 rise
• B)U.S. net capital outflow will fall.
• C)U.S. domestic investment will rise
• D)the dollar will appreciate

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Definitions:

Direct Control

The ability to influence the management and policies of another entity through direct ownership or voting rights.

Indirect Control

The control over an entity achieved through another entity, such as controlling a subsidiary by owning a majority of shares in its parent company.

Equity Method

An accounting technique used by companies to record investments in other companies, where the investment is initially recorded at cost and adjusted for the investor's share of the investee's profit or loss.

Non-Controlling Interest

The portion of equity in a subsidiary not owned by the parent company, reflecting minority shareholders' stake in the entity's net assets.