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Which of the following statement is True? When US economy grows faster than other countries, foreign want to park their money in a strong economy,
Which of the following statement is True? When US economy grows faster than other countries, foreign want to park their money in a strong economy, typically measured by GDP. Who wants to park their money in a country whose economy is in trouble? When US raises the interest rate relatively higher than other countries, foreigners invest more on US financial assets, buying US dollars and selling their currencies, strengthening and appreciating USD against foreign currencies. When US inflation rates are lower than other countries, foreign consumers buy more US goods, buying US dollars and selling their currencies, strengthening and appreciating USD against foreign currencies. All of the above is correct. Only statement A and B are correct.
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