An investor in a foreign country desires that the inflation rate in the foreign country will be

Question

Quizplus · Accepted Answer

If the inflation rate in the foreign country is higher than in the investor's country, then the investor can benefit from higher nominal returns on their investments. However, this assumes that the exchange rate between the two currencies remains relatively stable. If the exchange rate depreciates significantly, then any gain from higher nominal returns may be offset by currency exchange losses.

An Investor in a Foreign Country Desires That the Inflation