Multiple Choice
If the U.S. interest rate is 5% and the interest rate in Germany is 2%, and the euro is expected to appreciate by 2% over the next year, then investors would:
A) sell dollars in the spot market.
B) buy euros.
C) seek to invest in the United States.
D) seek to invest in Germany.
Correct Answer:
Verified
Correct Answer:
Verified
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