When Americans or Foreigners Expect the Return on ________ Assets

question 72

Multiple Choice

When Americans or foreigners expect the return on ________ assets to be high relative to the return on ________ assets,there is a higher demand for dollar assets and a correspondingly lower demand for foreign assets.

• A)dollar;dollar
• B)dollar;foreign
• C)foreign;dollar
• D)foreign;foreign

---

Definitions:

Pluralistic Ignorance

A social psychological phenomenon where individuals mistakenly believe their thoughts, feelings, or behaviors are different from those of the group, leading to conformity despite private disagreement.

Social Value Orientation

An individual's preferences when allocating resources between oneself and others, which can influence behavior in social situations.

Competitive

A characteristic of entities that strive against each other to achieve a goal, such as winning a game or dominating a market.

Altruistic

Showing selfless concern for the well-being of others; behaviors or actions motivated by the desire to help without expecting anything in return.