Statement I: A declining dollar makes foreign investment in dollar-denominated assets more attractive.
Statement II: In the last 20 years,foreigners have expanded their role in the U.S.as both creditors and owners.

A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.

Dollar-Denominated Assets

Financial assets such as bonds, stocks, or bank deposits that are measured in U.S. dollars.

Foreign Investment

Foreign investment involves capital flows from one country to another, granting the investor ownership stakes in foreign companies or assets, aiming for future returns on the investments.

Creditors

Individuals or institutions that lend money or extend credit, expecting to be repaid, usually with interest.