Question

When Americans or Europeans expect the return on ________ assets to be high relative to the return on ________ assets, there is a ________ demand for dollar assets, everything else held constant. euro; dollar; higher dollar; euro; constant euro; dollar; lower dollar; euro; lower

Answer 1

When Americans or Europeans expect the return on ___euro_____ assets to be high relative to the return on ___dollar_____ assets, there is a ___low_____ demand for dollar assets, everything else held constant.

Step-by-step explanation:

This implies that the euro assets are earning more profits than the dollar assets, making the euro assets more attractive to American or European investors than the dollar assets. This follows the natural law of the market forces of demand and supply. Investors are always attracted to better yielding assets than their comparatives.