Question: Assume that the U.S. borrowing rate is 8% while the German is 10%. If Euros are borrowed by a U.S. firm for one year, they

Assume that the U.S. borrowing rate is 8% while the German

Assume that the U.S. borrowing rate is 8% while the German is 10%. If Euros are borrowed by a U.S. firm for one year, they would have to against the dollar by to have the same effective financing rate as borrowing dollars. Depreciate, 1.6363%. O Depreciate. 1.1818%. O Appreciate, 1.8518%. Depreciate, 1.8518%. O Appreciate, 1.1818%

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