If the Nominal Expected Return on Foreign Assets Is Higher

question 17

Multiple Choice

If the nominal expected return on foreign assets is higher than on dollar assets ________.

• A)foreigners will want to hold additional dollar assets
• B)Americans will want to hold additional dollar assets
• C)foreigners will want to hold fewer foreign assets
• D)foreigners will want to hold additional foreign assets

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Definitions:

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms or societal standards.

Obedience to Authority

The act of following orders or directions from someone in a position of power, even if one might personally disagree with the actions.

Milgram's Study

A psychological experiment conducted by Stanley Milgram, which aimed to understand obedience to authority figures.

Evolutionary Theory

Evolutionary theory is a scientific explanation for the diversity of life on Earth, highlighting the process of natural selection and descent with modification.