Which of the following types of effects have some economists proposed as a reason why sterilized interventions might influence interest rates and other economic variables?

Question

Quizplus · Accepted Answer

Some economists have proposed portfolio balance effects as a reason why sterilized interventions might influence interest rates and other economic variables. Sterilized interventions involve buying or selling foreign currency without changing the domestic money supply, which can affect the composition of private portfolios and therefore affect interest rates and other economic variables.

Which of the Following Types of Effects Have Some Economists