The Portfolio-Balance Approach assumes:
A) imperfect capital mobility
B) perfectly elastic demand for foreign bonds
C) interest rate equalization across countries
D) imperfect substitution between domestic and foreign bonds

Question

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The Answer of The Portfolio-Balance Approach assumes:
A) imperfect capital mobility
B) perfectly elastic demand for foreign bonds
C) interest rate equalization across countries
D) imperfect substitution between domestic and foreign bonds

The Portfolio-Balance Approach Assumes