If a Foreign Currency Consistently Depreciated Against the Dollar Over

question 29

Multiple Choice

If a foreign currency consistently depreciated against the dollar over several periods and had lower interest rates at the beginning of those periods than the U.S. interest rates, then:​

• A)U.S. firms could have achieved a higher effective yield on foreign deposits than on U.S. deposits during those periods.
• B)the international Fisher effect is supported by the results.
• C)A and B
• D)none of the above

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