QUESTION 11 If foreigners investing in the United States (i.e. DI) is less than U.S. investors investing abroad (i.e. Fl), 3 the relative price of
QUESTION 11 If foreigners investing in the United States (i.e. DI) is less than U.S. investors investing abroad (i.e. Fl), 3 the relative price of Fl is increasing 3 there is a current account decit :1 the relative price of imports is higher :1 the DC has more demand than supply in the FX market 3 there is more supply of the DC than demand for the DC in the FX market QUESTION 12 If foreigners investing in the United States (i.e. DI) is less than U.S. investors investing abroad (i.e. Fl), :1 the relative price of Fl is increasing 3 the DC has more demand than supply in the FX market 3 the relative price of imports is higher :1 there is more supply of the DC than demand for the DC in the FX market 3 there is a current account decit
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