what-is-the-effect-of-foreign-investment-in-the-financial-account-on-the-domesti

Question

What is the effect of foreign investment in the financial account on the domestic economy?

Accepted Answer

It can lead to increased capital inflows, boosting economic growth.

Answer

It results in a trade surplus.

Answer

It has no effect on the domestic economy.

Answer

It decreases the domestic money supply.