Ignoring Risk Differences, If We Observe American Investors Purchasing Foreign

question 7

Multiple Choice

Ignoring risk differences, if we observe American investors purchasing foreign bonds when the U.S.interest rate is above the foreign interest rate, we could assume that:

• A)American investors lack good information
• B)These investors expect the dollar to appreciate over the life of their investment
• C)These investors expect the dollar to depreciate over the life of their investment
• D)These investors expect that U.S.inflation will increase

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Definitions:

Ejaculate

The release of semen from the male reproductive system during orgasm.

Cunnilingus

Oral stimulation of the female genitals.

Sodomy

Term used in the law to define sexual behaviors other than penile-vaginal intercourse, such as anal sex and oral sex.

Exhibitionism

Exposing one’s genitals to an unsuspecting person.