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Investors from Germany, the United States, and the U

Question 2

Multiple Choice

Investors from Germany, the United States, and the U.K. 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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