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1 vote
Which of the following factors is most likely to discourage a foreign investor from investing in a country's currency?

A.
A high interest rate
B.
Low government debt
C.
A low rate of exports in comparison to imports
D.
A high inflation rate

User Jay Haase
by
8.1k points

2 Answers

6 votes
it would be d high inflation rate 
User Enith
by
7.5k points
6 votes

Answer:

D. A high inflation rate

Step-by-step explanation:

  • As investment erodes the value of the investments and thus investors may shift their investment rats to the other countries. Thus more the investor would be interested in having a long term purchasing power. This thus leads to a rise in the value of prices and has a long term effect on the economy of the country.
User Khaled Ramadan
by
8.5k points
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