With a 10 percent interest rate on dollar deposits,and an expected appreciation of 7 percent over the coming year,the expected return on dollar deposits in terms of the dollar is

Question

Quizplus · Accepted Answer

The expected return on dollar deposits in terms of the dollar is simply the interest rate on those deposits, which is 10 percent. The expected appreciation does not affect the return in terms of the dollar itself.

With a 10 Percent Interest Rate on Dollar Deposits,and an Expected