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    Business
  3. Study Set
    International Economics
  4. Exam
    Exam 15: Exchange Rate Determination
  5. Question
    According to the Portfolio Balance Approach,a Reduction in the Risk
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According to the Portfolio Balance Approach,a Reduction in the Risk

Question 2

Question 2

Multiple Choice

According to the portfolio balance approach,a reduction in the risk premium on the foreign bond leads domestic residents to increase the demand for the:


A) domestic money
B) domestic bond
C) foreign bond
D) all of the above

Correct Answer:

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