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Which of the following best describes what will happen to the value of assets traded immediately after the dollar appreciates against a foreign currency Group

Which of the following best describes what will happen to the value of assets traded immediately after the dollar appreciates against a foreign currency

Group of answer choices

Net dollar inflows will increase as foreign buyers will import more American goods

Net dollar inflows will decrease because American exports are now less valuable

Net dollar inflows will increase as American exports are more valuable

Net dollar inflows will decrease as foreign buyers will import fewer American goods

Sometimes, projects in developed countries have similar or even higher costs of capital than would a comparable project in a developing country. What could explain this?

Group of answer choices

Investors are unwilling to invest in regions with lower property protections

Developing countries are less risky

Investors like helping developing countries

The extra risk associated with developing countries is largely idiosyncratic

Which of the following should be equal to the quantity of dollars demanded by people holding euros?

Group of answer choices

The dollar value of the supply of euros to buyers holding dollars

The euro value of dollars demanded by people holding euros

The quantity of euros demanded by people holding dollars

The quantity of euros supplied to people holding dollars

A weak dollar will

Group of answer choices

force American exporters to raise their foreign currency prices

enable American exporters to improve their profit margins

enable American importers to reduce their dollar costs

cost American exporters market share abroad

Which of these is NOT the reason for market segmentation (i.e. that investors display home country bias).

Group of answer choices

Government controls

Difference in market risk

Differences in taxes

Information asymmetry

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