When Americans or foreigners expect the return on ________ assets to be high relative to the return on ________ assets,there is a higher demand for dollar assets and a correspondingly lower demand for foreign assets.

Question

Quizplus · Accepted Answer

When people expect the return on dollar assets to be higher than foreign assets, they would want to invest in dollar assets. Therefore, there would be higher demand for dollar assets and lower demands for foreign assets.

When Americans or Foreigners Expect the Return on ________ Assets