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If the Interest Rate on Foreign Deposits Increases,holding Everything Else

Question 31

Multiple Choice

If the interest rate on foreign deposits increases,holding everything else constant,


A) the expected return on these deposits must also increase.
B) the expected return on domestic deposits must decrease.
C) the expected return on domestic deposits must increase.
D) both A and B of the above.
E) both A and C of the above.

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