Multiple Choice
You are the CEO of a firm considering opening a factory in Peru.If the dollar appreciated relative to the Peruvian peso,then other things the same
A) you'd find it took fewer dollars to build the factory.The building of the factory increases U.S.net capital outflow.
B) you'd find it took fewer dollars to build the factory.The building of the factory decreases U.S.net capital outflow.
C) you'd find it took more dollars to build the factory.If you still build the factory anyway, it will increase U.S.net capital outflow.
D) you'd find it took more dollars to build the factory.If you still build the factory anyway, it will decrease U.S.net capital outflow.
Correct Answer:
Verified
Correct Answer:
Verified
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