If the interest rate received in Mexico is greater than that obtained in the United States,
A) the interest rate will decrease in the United States in the future.
B) the interest rate will increase in the United States in the future.
C) the interest rate will increase in Mexico in the future.
D) the interest rate will not change in either country.
B
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Refer to the scenario above. The present value of the positive cash flows from the investment in Plan 2 is equal to:
A) $9,209. B) $6,263. C) $15,670. D) $7,537.
The long-run Phillips curve is
A) vertical. B) horizontal. C) upward sloping. D) downward sloping.
Cobb-Douglas production functions can never possess varying returns to scale
Indicate whether the statement is true or false
The ratio of debt to GDP is much higher in the United States than in most other industrialized nations
Indicate whether the statement is true or false