If a foreign currency consistently depreciated against the dollar over several periods and had lower interest rates at the beginning of those periods than the U.S. interest rates, then:
A) U.S. firms could have achieved a higher effective yield on foreign deposits than on U.S. deposits during those periods.
B) the international Fisher effect is supported by the results.
C) U.S. firms could have achieved a higher effective yield on foreign deposits than on U.S. deposits during those periods AND the international Fisher effect is supported by the results.
D) None of these are correct.
Correct Answer:
Verified
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