Long- term capital movements are largely influenced by
A) differences in the overnight interest rates between the domestic country and foreign countries.
B) speculation about movements in the exchange rate in coming months.
C) long- term expectations about another country's profit opportunities and the path of the exchange rate.
D) whether they are treated as debits or credits in the capital account.
E) speculation about the movements in monthly inflation rate estimates.
Correct Answer:
Verified
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