Foreign entities O a) typically require a smaller inflation premium than domestic borrowers. O b) typically require a greater inflation premium than domestic borrowers. Od are generally borrowers of domestic (U.S.) loanable funds. O d) 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. O e) are generally lenders in the domestic (U.S.) loanable funds.

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter2: The One Lesson Of Business
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Foreign entities
O a) typically require a smaller inflation premium than domestic borrowers.
O b) typically require a greater inflation premium than domestic borrowers.
c) are generally borrowers of domestic (U.s.) loanable funds.
d) 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.
e) are generally lenders in the domestic (U.S.) loanable funds.
Transcribed Image Text:Foreign entities O a) typically require a smaller inflation premium than domestic borrowers. O b) typically require a greater inflation premium than domestic borrowers. c) are generally borrowers of domestic (U.s.) loanable funds. d) 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. e) are generally lenders in the domestic (U.S.) loanable funds.
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