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At Each Value of the Domestic Interest Rate, Increases in the Riskiness

Question 16

Multiple Choice

At each value of the domestic interest rate, increases in the riskiness of domestic assets ________ capital inflows, ________ capital outflows, and ________ net capital inflows.


A) increase; increase; increase
B) increase; increase; decrease
C) increase; decrease; increase
D) decrease; increase; decrease

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