In general, foreign entities: a. are borrowers of domestic (U.S.) loanable funds. b. require a greater inflation premium than domestic borrowers. c. are not concerned about the U.S. interest rate compared to their own, since it is illegal for them to lend in the United States. d. are lenders in the domestic (U.S.) loanable funds. e. require a smaller inflation premium than domes tic borrowers.
In general, foreign entities: a. are borrowers of domestic (U.S.) loanable funds. b. require a greater inflation premium than domestic borrowers. c. are not concerned about the U.S. interest rate compared to their own, since it is illegal for them to lend in the United States. d. are lenders in the domestic (U.S.) loanable funds. e. require a smaller inflation premium than domes tic borrowers.
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter27: Investment, The Capital Market, And The Wealth Of Nations
Section: Chapter Questions
Problem 11CQ
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Question
In general, foreign entities:
a.
are borrowers of domestic (U.S.) loanable funds.
b.
require a greater inflation premium than domestic borrowers.
c.
are not concerned about the U.S. interest rate compared to their own, since it is illegal for them to lend in the United States.
d.
are lenders in the domestic (U.S.) loanable funds.
e.
require a smaller inflation premium than domes
tic borrowers.
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