When Canadians or foreigners expect the return on ________ assets to be high relative to the return on ________ assets, there is a higher demand for dollar assets and a correspondingly lower demand for foreign assets.

Question

Quizplus · Accepted Answer

When Canadians or foreigners expect the return on dollar assets to be high relative to the return on foreign assets, there is a higher demand for dollar assets and a correspondingly lower demand for foreign assets. Therefore, the best choice is B, which refers to the return on foreign assets.

When Canadians or Foreigners Expect the Return on ________ Assets