the expected return on euro deposits in terms of dollars is 3 percent. the expected return on dollar deposits equals the expected return on euro deposits Question 2 2.5 pts If the 2019 inflation rate in Britain is 2 percent, and the inflation rate in the U.S. is 4 percent, then the theory of purchasing power parity predicts that, during 2019, the value of the British pound in terms of U.S. dollars will rise by 10 percent. rise by 2 percent. fall by 10 percent fall by 2 percent do none of the above. D Question 3 2.5 pts Astock currently sells for $30 per share and pays $1.00 per year in dividends. What is an investor's valuation of this stock if he expects it to be selling for $37 in one year and requires 12 percent return on equity investments? $33.50 HIILIHY payment to interest on the loan all of the monthly payment to interest on the loan. the monthly payment equally to interest on the loan and the outstanding principal balance. Question 13 In the short run, the quantity of dollars supplied (deposits, bonds, equities) is fixed with respect to the exchange rate. quite volatile and difficult to model in a supply demand framework. typically following the business cycle. is best represented with a horizontal supply curve. Question 14 Referring to Table 1, First National Bank has a gap of Table 1 Assets Rate Sensitive Fixed-rate $20 million $80 million $50 milli $40 millio