3
QuizMultiple Choice

Globalization — Cumulative exam

Question 3 of 25 • MO-Economics

If investors can earn 10 percent interest in an account in Mexico but just 3 percent in the United States, those investors will most likely

Answer
A
continue to invest in the United States and have no effect on the exchange rate.
B
want to invest in Mexico and cause the exchange rate to rise.
C
try to do anything possible to keep the exchange rate from changing.
D
want to invest in Mexico, which will cause the peso to appreciate.
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