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Question 3 2 Investors from Germany, the United States, and the United Kingdom frequently invest in each other's currencies based on prevailing interest rates. If

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Investors from Germany, the United States, and the United Kingdom frequently invest in each other's currencies based on prevailing interest

rates. If British interest rates increase, German investors are likely to buy

dollar

-

denominated securities

,

and the euro is likely to

relative to the dollar.

more; appreciate

more; depreciate

fewer; depreciate

fewer; appreciate

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