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pls solve the question as soon as possible. a. Assume that you are an US Multinational company, decided to set up an operation in Germany.

pls solve the question as soon as possible. image text in transcribed
a. Assume that you are an US Multinational company, decided to set up an operation in Germany. Currently the equilibrium exchange rate is priced at $1=0.95EUR. using the demand and supply diagram show how does investment in foreign operation have impact on US dollar against EUR? b. Assume that Eurodollar deposit offer a rate of return of 10% while dollar deposit in US Bank offer 8% rate of return. What will happen the value of USD against EUR? Make sure that you use demand supply diagram to explain such impact

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