According to the portfolio balance approach,an increase in domestic real income or GDP leads domestic residents to increase the demand for the:
A) domestic money
B) domestic bond
C) foreign bond
D) all of the above

Question

Quizplus · Accepted Answer

An increase in domestic real income or GDP typically leads to an increase in the demand for domestic money as people have more income to hold and transact with.

According to the Portfolio Balance Approach,an Increase in Domestic Real