An inflow of investment funds into the United States from overseas is likely to result from a(n):

Question

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When there is a rise in U.S. interest rates relative to world interest rates, investors are more likely to invest in the United States to take advantage of higher returns. This leads to an inflow of investment funds from overseas. A decline in expectations for economic growth in the United States (A) or an increase in the U.S. inflation rate (D) are more likely to result in a decrease in investment. While a belief that the U.S. dollar is overvalued (B) could lead to a decrease in investment, it is not necessarily a guarantee that an inflow of investment funds will occur.

An Inflow of Investment Funds into the United States from Overseas