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Investors from Germany,the United States,and Britain Frequently Invest in Each

Question 2

Multiple Choice

Investors from Germany,the United States,and Britain frequently invest in each other based on prevailing interest rates.If British interest rates increase,German investors are likely to buy ________ dollar-denominated securities,and the euro is likely to _________ relative to the dollar.


A) fewer;depreciate
B) fewer;appreciate
C) more;depreciate
D) more;appreciate

Correct Answer:

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