Author Question: Assume that the interest rate in a foreign country is 7 and that the foreign currency is expected to ... (Read 87 times)

justinmsk · **on:** Jun 30, 2018

Assume that the interest rate in a foreign country is 7 and that the foreign currency is expected to depreciate by 3 during the year. For each dollar that a U.S. resident invests in foreign bonds, he/she can expect to get back an approximate total of

A) .93.
B) .96.
C) 1.04.
D) 1.07.
E) 1.10.

Question 2

Henry Ford's experiment with efficiency wages resulted in

A) a dramatic drop in productivity.
B) a dramatic increase in the turnover rate.
C) a reduction in the layoff rate.
D) new problems with the work force, like drunkenness and reckless driving.
E) no noticeable effects.