The asset market approach to forecasting assumes that whether foreigners are willing to hold claims in monetary form depends on an extensive set of investment considerations. These include all but which of the following choices?
A) relative real interest rates
B) capital market liquidity
C) political safety
D) All of the above are considered by investors in their decision process.

Question

Quizplus · Accepted Answer

All of the above choices - relative real interest rates, capital market liquidity, and political safety - are considered by investors in their decision process.

The Asset Market Approach to Forecasting Assumes That Whether Foreigners