Question

Suppose demand for U.S. products across the world increases. What is the impact on the flow of financial capital as a result of the increase in demand for products, the value of the U.S. dollar, and the foreign money price of the U.S. dollar

Answer 1

Explanation:

Financial Capital Flow refers to the movement of investment capital, in and out of countries.  When money for investment goes from one country to another, it is a capital flow, in-flow for the country receiving and out-flow for the country investing.The term does not include money people and businesses use to purchase each others' goods and services.There is why, in this scenario, there is no recorded change in financial capital flow in the U.S.

The value of the U.S. dollar is the total amount of U.S. dollar which a foreign currency can purchase at a particular exchange rate.  It is based on the exchange rate, otherwise called the price of the U.S. dollar to another currency.

Price of the U.S. dollar is the exchange rate.  It shows the value of one U.S. dollar vis-a-vis a foreign currency.