If the dollar interest rate is 10 percent and the euro interest rate is 6 percent, then15
A) a...
If the dollar interest rate is 10 percent and the euro interest rate is 6 percent, then15
A) an investor should invest only in dollars if the expected dollar depreciation against the euro is 8 percent.
B) an investor should invest only in euros if the expected dollar depreciation against the euro is 8 percent.
C) an investor should invest only in dollars.
D) an investor should invest only in euros.
E) an investor should be indifferent between dollars and euros if the expected dollardepreciation against the euro is 8 percent.
Answers: 2
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