A Canadian investor makes $10,000 in the form of a dividend payment from an American firm (think of a dividend as a type of income received from the ownership of a type of factor, e.g. capital). This money is deposited in a New York bank account. A U.S. hedge fund buys $1 million worth of German government bonds and pays for it by selling $1 million worth of French government stocks.

A Canadian investor makes $10,000 in the form of a dividend payment from an American firm (think of a dividend as a type of income received from the ownership of a type of factor, e.g. capital). This money is deposited in a New York bank account. A U.S. hedge fund buys $1 million worth of German government bonds and pays for it by selling $1 million worth of French government stocks.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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