The ________ suggests that the most important factor affecting the demand for domestic and foreign assets is the expected return on domestic assets relative to foreign assets.
A) theory of asset demand
B) law of one price
C) interest parity condition
D) theory of foreign capital mobility
Correct Answer:
Verified
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Q42: Anything that increases the demand for foreign
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Q47: As the relative expected return on dollar
Q49: Everything else held constant,if a factor decreases
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Q77: When Americans or foreigners expect the return
Q79: When Americans or foreigners expect the return
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