Assume that the United States invests heavily in government and corporate securities of France. In addition, residents of France invest heavily in the United States. Approximately $7 trillion worth of investment transactions occur between these two countries each year. The total dollar value of trade transactions per year is about $4 trillion. Then directly influences their exchange rate the most. ---- inflation and interest rate differentials inflation differential only income differential only O interest ate differential only inflation and income differentials

Assume that the United States invests heavily in government and corporate securities of France. In addition, residents of France invest heavily in the United States. Approximately $7 trillion worth of investment transactions occur between these two countries each year. The total dollar value of trade transactions per year is about $4 trillion. Then directly influences their exchange rate the most. ---- inflation and interest rate differentials inflation differential only income differential only O interest ate differential only inflation and income differentials

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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