Which of the following is true?

Direct foreign investment into the U.S. represents a trade inflow.

An increase in the use of quotas is expected to reduce the country's current account balance, if other governments do not retaliate.

A U.S.-based MNC has many foreign subsidiaries in Europe and does not expect to increase its investment there. Its value should increase if the value of the euro weakens over time.

A weak home currency may not be a perfect solution to correct a balance of trade deficit because foreign companies may reduce the prices of their products to stay competitive.