In a freely floating exchange rate system,if the capital account surplus for the U.S.rises,what will most likely happen to the real value of the dollar?

Question

Quizplus · Accepted Answer

A capital account surplus means there is an inflow of foreign investments into the U.S., leading to an increase in demand for the dollar. This, in turn, leads to a rise in the real value of the dollar in a freely floating exchange rate system.

In a Freely Floating Exchange Rate System,if the Capital Account