The demand by foreign investors for the stock of a U.S. firm sold on a U.S. exchange may be higher when the dollar is expected to ____, other things being equal. (Assume the firm's operations are unaffected by the value of the dollar.)

Question

Quizplus · Accepted Answer

When the dollar is expected to strengthen, foreign investors may anticipate that their investment in U.S. stocks will be worth more in their home currency in the future, making U.S. stocks more attractive to them.

The Demand by Foreign Investors for the Stock of a U.S