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:

Pollution Laws

Legislation that sets limits on the emission of pollutants into the environment, aiming to protect air and water quality.

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single entity can influence the market price.

Positive Profits

Financial gains that exceed the costs and expenditures incurred in generating revenue.

Demand Fluctuates

The variability in consumer desire to purchase goods or services over time, often affected by seasons, trends, or economic conditions.