If the interest rate is 7 percent on euro-denominated assets and 5 percent on dollar-denominated ​assets, and if the dollar is expected to appreciate at a 4 percent​ rate, the expected return on ​________-denominated assets in terms of​ ________ percent. A. ​euro; euros is 7 B. ​euro; dollars is 1 C. ​dollar; dollars is 7 D. ​dollar; euros is 1

Brief Principles of Macroeconomics (MindTap Course List)
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Author:N. Gregory Mankiw
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Chapter14: A Macroeconomic Theory Of The Open Economy
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If the interest rate is 7 percent on euro-denominated assets and 5 percent on dollar-denominated ​assets, and if the dollar is expected to appreciate at a 4 percent​ rate, the expected return on ​________-denominated assets in terms of​ ________ percent. A. ​euro; euros is 7 B. ​euro; dollars is 1 C. ​dollar; dollars is 7 D. ​dollar; euros is 1
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