If There Is a Decline in Home Bias, U

Multiple Choice

If there is a decline in home bias, U.S. residents are more likely to invest their savings in

A) the domestic economy and this will lead to a decrease in the capital account surplus.
B) foreign economies and this will lead to an increase in the capital account surplus.
C) the domestic economy and this will lead to an increase in the capital account surplus.
D) foreign economies and this will lead to a decrease in the capital account surplus.