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Suppose the annual interest rate on govermment securities in the U.S. equals 5 percent while...

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Suppose the annual interest rate on govermment securities in the U.S. equals 5 percent while the annual inflation rate equals 2 percent. For Germany, suppose the annual interest rate on government securities equals 6 percent while the annual inflation rate equals 4 percent. These variables would cause net investment funds to flow from: The United States to Germany, causing the dollar to depreciate. The United States to Germany, causing the dollar to appreciate. Germany to the United States, causing the euro to appreciate. From Gemany to the United States, causing the dollar to depreciate. Germuny to the United States, causing the euro to depreciate

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