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If the dollar interest rate is 10 percent and the euro interest rate is 6 percent, then

Chako

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8 years ago

If the dollar interest rate is 10 percent and the euro interest rate is 6 percent, then

If the dollar interest rate is 10 percent and the euro interest rate is 6 percent, then
A) an investor should invest only in euros if the expected dollar depreciation against the euro is 8 percent.
B) an investor should be indifferent between dollars and euros if the expected dollar depreciation against the euro is 8 percent.
C) an investor should invest only in euros.
D) an investor should invest only in dollars.
E) an investor should invest only in dollars if the expected dollar depreciation against the euro is 8 percent.

Textbook

International Economics: Theory and Policy

Edition: 10^th

Author: Krugman

Read 121 times

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machukian

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Chako Author

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8 years ago

I doubted this website before I signed up. I regret not being a member earlier lol

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machukian

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8 years ago

Good luck

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