In the Portfolio Balance Model, Other Things Equal, an Increase

Multiple Choice

In the portfolio balance model, other things equal, an increase in home country wealth because of a current account surplus

A) will reduce home country demand for money.
B) will reduce home country demand for foreign bonds.
C) will have an indeterminate effect on the domestic interest rate (without more Information) .
D) will not affect the domestic demand for either foreign or domestic bonds.