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Home Q & A Board Other Fields Homework Help Business Economics
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Roar Roar
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6 years ago
Suppose the U.S. one-year interest rate is 3% per year, while a foreign country has a one-year interest rate of 5% per year. Ignoring risk and transaction costs, a U.S. investor should invest in foreign bonds as long as the expected yearly rate of depreciation of the foreign currency is
A) less than 5%.
B) greater than 5%.
C) greater than 2%.
D) less than 2%.
E) less than 1%.
Textbook 
Macroeconomics

Macroeconomics


Edition: 6th
Authors:
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legendvpnlegendvpn
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Roar Author
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#2
5 years ago
You are the king! Thank you
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