Investors invest in foreign securities

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Consider a situation in which U.S. interest rates are, for the most part, higher than interest rates of other nations. From the perspective of the International Fisher Effect, would you predict that the U.S. dollar will strengthen or weaken? In the context of the International Fisher Effect, would you recommend U.S. investors invest in foreign securities? Would you recommend foreign investors invest in U.S. securities?

Reference no: EM131007214

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