If formula I of Fishers effect is positive, borrow ____________and invest in .
A)foreign, home
B)foreign, foreign
C)home, home
D)home, foreign

Question

Quizplus · Accepted Answer

When Fisher's effect is positive, it indicates that the interest rate in the foreign country is higher than in the home country, making it beneficial to borrow from the home country where interest rates are lower and invest in the foreign country where returns are higher.

If Formula I of Fishers Effect Is Positive, Borrow ____________And