________ in the expected future domestic exchange rate causes the demand for domestic assets to shift to the ________ and the domestic currency to depreciate,everything else held constant.

Question

Quizplus · Accepted Answer

A decrease in the expected future domestic exchange rate makes domestic assets less attractive, causing the demand for them to shift to the left, leading to a depreciation of the domestic currency.

________ in the Expected Future Domestic Exchange Rate Causes the Demand