Multiple Choice
Use the following table to answer the next two questions
European Expected value of the dollar in 3 months
Investor (dollars per euro)
Investor #1 $1.30
Investor #2 $1.20
Investor #3 $1.15
-If the current exchange value of the dollar is $1.25 per euro
A) European Investor #1 has less incentive to invest in the United States,and thus demands fewer dollars
B) European Investor #2 has less incentive to invest in the United States,and thus demands fewer dollars
C) European Investor #3 has less incentive to invest in the United States,and thus demands fewer dollars
D) all three European investors have less incentive to invest in the United States,and thus demands fewer dollars
Correct Answer:

Verified
Correct Answer:
Verified
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