The inflow of foreign investment into the U.S.economy reflects a level of confidence in the United States.
When foreigners wish to invest in the United States it is a vote of confidence by the market; this will also tend to increase the demand for the dollar and cause it to appreciate.

Question

Quizplus · Accepted Answer

This statement is true. Foreign investment into the U.S. economy is often seen by the market as a vote of confidence, indicating that foreign investors believe the U.S. economy offers opportunities for profitable investment. This can increase demand for the dollar and cause its value to appreciate relative to other currencies.

The Inflow of Foreign Investment into the U