Question: Factors Affecting International Capital Flows - A decrease in the tax rate on dividends in a country is likely to [_____] portfolio investment in that

Factors Affecting International Capital Flows - A decrease in the tax rate on dividends in a country is likely to [_____] portfolio investment in that country. Further, if a country's currency is expected to strengthen relative to the currency of a potential foreign investor, direct foreign investment (DFI) will likely [______].

a) Increase; decrease

b) Increase; increase

c) Decrease; increase

d) Decrease; decrease

e) Increase; remain unchanged

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