If the dollar interest rate is 5 percent and the euro interest rate is 3 percent, then an investor should O be indifferent between dollars and euros. invest only in euros if the exchange rate is expected to remain constant. O invest only in euros. O invest only in dollars if the exchange rate is expected to remain constant. O invest only in dollars.

If the dollar interest rate is 5 percent and the euro interest rate is 3 percent, then an investor should O be indifferent between dollars and euros. invest only in euros if the exchange rate is expected to remain constant. O invest only in euros. O invest only in dollars if the exchange rate is expected to remain constant. O invest only in dollars.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

If the dollar interest rate is 5 percent and the euro interest rate is 3 percent, then an
investor should
O be indifferent between dollars and euros.
invest only in euros if the exchange rate is expected to remain constant.
O invest only in euros.
O invest only in dollars if the exchange rate is expected to remain constant.
O invest only in dollars.

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