MCQOPTIONS
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| 1. |
For the United States suppose the annual interest rate on government securities equals 8 percent while the annual inflation rate equals 4 percent, For Switzerland the annual interest rate on government securities equal 10 percent while the annual inflation rate equals 7 percent the above variables would cause investment funds to flow from ? |
| A. | the United States to Switzerland causing the dollar to depreciate |
| B. | the United States to Switzerland causing the dollar to appreciate |
| C. | Switzerland to the United States causing the franc to depreciate |
| D. | Switzerland to the United States causing the franc to appreciate |
| Answer» D. Switzerland to the United States causing the franc to appreciate | |