If the dollar interest rate is 4 percent, the euro interest rate is 6 percent, then
A) an investor should invest only in dollars.
B) an investor should invest only in euros.
C) an investor should be indifferent between dollars and euros.
D) invest only in dollars if the exchange rate is expected to remain constant.
E) invest only in euros if the exchange rate is expected to remain constant.
E
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The term prisoners' dilemma
a. refers only to situations where prisoners' must confess on one another. b. is in agreement with Adam Smith's invisible hand idea. c. represents situations where people do not act in their own self interest. d. can be applied to show why cartels are difficult to maintain.
What is true about dominant strategies in the game in Scenario 13.10?
A) "Use more caffeine" and "have a sweepstakes" are dominant strategies. B) "Use more caffeine" and "create a diet soda" are dominant strategies. C) "Make animal-shaped bottles" and "have a sweepstakes" are dominant strategies. D) "Make animal-shaped bottles" and "create a diet soda" are dominant strategies. E) There are no dominant strategies.
A result of a positive externality in the production of a good is that
A) the price system will over-allocate resources to the production of that good or service. B) the price system will under-allocate resources to the production of that good or service. C) the market supply will be too high. D) the market demand will be too high.
Net exports became negative for the U.S. in the
A. 1930s. B. 1950s. C. 1970s. D. 1990s.