If Investment Opportunities in the U

question 127

Multiple Choice

If investment opportunities in the U.S. become more attractive to foreigners,

• A) the exchange-rate value of the dollar will fall.
• B) the current-account balance will shift toward a deficit.
• C) the capital inflows to the U.S. will fall.
• D) all of the above are true.

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Definitions:

Bluffing

The act of misleading others into believing something that is not true, especially to gain an advantage in negotiations or competitions.

Misrepresenting

The act of presenting information in a way that is false or misleading.

Truth Telling

The act of providing honest and accurate information or disclosure.

Distributive Bargaining

A negotiation strategy that involves a fixed amount of resources to be divided between parties, often leading to a win-lose situation.