If the interest rate on dollar deposits is 10 percent,and the dollar is expected to appreciate by 7 percent over the coming year,the expected return on dollar deposits in terms of the foreign currency is

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The expected return on dollar deposits in terms of foreign currency combines the interest rate and the appreciation of the dollar. The total expected return is calculated by adding the interest rate (10%) to the product of the interest rate and the appreciation rate (10% * 7% = 0.7%), and then adding the appreciation rate (7%). This gives a total expected return of 10% + 0.7% + 7% = 17.7%, which is approximately 17%.

If the Interest Rate on Dollar Deposits Is 10 Percent,and