If interest rates are the same on similar assets in the U.S. and abroad, and investors expect the U.S. dollar to weaken relative to foreign currencies in the future, where are investment funds most likely to move?

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shift from the U.S. to international marketsmove from international markets into the U.S.stay exclusively in foreign investmentsstay exclusively within the U.S. marketno change in investment allocation

Explanation

When investors expect the U.S. dollar to lose value against foreign currencies while interest rates are equal, they are inclined to transfer funds out of the U.S. into foreign markets to avoid currency depreciation losses.