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
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.
