A good time for an American to hold German stocks, ceteris paribus, is when the
A. The return in the German stock market has no relationship to the value of the dollar compared to the euro.
B. U.S. dollar depreciates in value compared to the euro.
C. Euro is stable compared to the U.S. dollar.
D. U.S. dollar appreciates in value compared to the euro.
Answer: B
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The distribution of world income is
a. equalizing rapidly. b. very unequal. c. very equal for countries in the Northern Hemisphere. d. very equal for countries in Europe.
Without trade, the consumption possibilities for two nations are:
a. outside their production possibilities curve. b. inside their production possibilities curve. c. along their production possibilities curve. d. at a point equal to the world production possibilities curve.
A price-discriminating firm will always maximize profit by following the condition that
a. MR > MC. b. MR > P. c. MRa = MRb = MC. d. MR = ATC.
Contrast the shapes of the supply curves for financial capital and land