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IB. Suppose that the return on U.S. dollar deposits is greater than the dollar rate of return on euro deposits (3.33%). Which of the following
IB. Suppose that the return on U.S. dollar deposits is greater than the dollar rate of return on euro deposits (3.33%). Which of the following statements is most likely to be true? a. Investors will get out of dollar deposits, and move into euro deposits b. Investors will get out of euro deposits, and move into dollar deposits c. The U.S. dollar will appreciate in value. d. The U.S. dollar will depreciate in value. e. Both and d are true. f. Both b and care true. 1C. Which of the following is more likely to explain day-to-day changes in the value of the U.S. dollar? a. Changes in world interest rates b. The state of the Chinese economy. 6. Change in investors' expectation of the future value of the U.S. dollar d. None of the factors above have much influence on the value of the U.S. dollar
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