If Foreigners Decide to Increase Their Investments in the U

Multiple Choice

If foreigners decide to increase their investments in the U.S., this will cause

A) an appreciation of the dollar and foreign goods to become cheaper
B) a depreciation of the dollar and U.S. goods to become cheaper
C) a favorable balance of trade and an appreciation of the dollar
D) balance of payments still nets out to zero
E) a surplus in the current account