Which of the following is most likely to result if foreigners decide to withdraw the funds that they have loaned to the United States over the past two decades?
A)U.S.net exports will rise.
B)U.S.saving will rise.
C)U.S.domestic investment will rise.
D)the dollar will appreciate.

Question

Quizplus · Accepted Answer

If foreigners withdraw their funds, the demand for the dollar would decrease, leading to a depreciation of the dollar. A weaker dollar makes U.S. goods cheaper for foreigners, potentially increasing U.S. net exports.

Which of the Following Is Most Likely to Result If